Marginal cost begins to rise when
A) diminishing marginal product begins.
B) diminishing marginal product ends.
C) average total cost falls.
D) fixed cost falls.

Question

Quizplus · Accepted Answer

Marginal cost begins to rise when diminishing marginal product begins, because as more units of variable input are added to a fixed input, the marginal product of the variable input eventually starts to decline, causing marginal cost to increase.

Marginal Cost Begins to Rise When