Asked by Gruia Ghiroaga on May 07, 2024
Verified
If marginal cost is rising,
A) average variable cost must be falling.
B) average fixed cost must be rising.
C) marginal product must be falling.
D) marginal product must be rising.
Marginal Cost
The cost of producing one additional unit of a good or service, which can vary depending on the level of production.
Average Variable Cost
The total variable cost divided by the quantity of output, representing the variable cost per unit of output.
Marginal Product
The additional output resulting from using one more unit of a particular input, holding all other inputs constant.
- Determine and understand the consequences of shifts in marginal cost on production quantities.
- Acquire knowledge about the marginal product of labor concept and its criticality in the context of production decisions.
Verified Answer
TS
Tommy SandersMay 13, 2024
Final Answer :
C
Explanation :
When marginal cost is rising, it typically indicates that each additional unit of output is more costly to produce than the previous one, suggesting that the marginal product (additional output from using one more unit of input) is falling.
Learning Objectives
- Determine and understand the consequences of shifts in marginal cost on production quantities.
- Acquire knowledge about the marginal product of labor concept and its criticality in the context of production decisions.