Asked by Rebecca Lovato on Jul 22, 2024
Verified
Which statement is FALSE?
A) When the marginal product of labor is upward sloping,the marginal cost curve is upward sloping.
B) The average fixed cost curve is downward sloping and approaches the horizontal axis as output increases.
C) The marginal cost curve intersects the average variable cost curve at the minimum of average variable cost.
D) When the marginal cost curve is above the average cost curve,the average cost curve is upward sloping.
Marginal Cost Curve
The marginal cost curve graphically represents the cost incurred in producing one additional unit of a good.
Average Fixed Cost
Represents the fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.
- Absorb the idea of diminishing marginal returns and its repercussions on manufacturing processes.
- Ascertain the situations in which diminishing marginal returns are observed.
- Present an analysis on the impact of increasing and diminishing marginal returns vis-a-vis marginal cost.
Verified Answer
DP
Diana PlangJul 25, 2024
Final Answer :
A
Explanation :
The statement A is false because when the marginal product of labor is increasing (upward sloping), the marginal cost of production is actually decreasing (downward sloping), not upward sloping. This is due to the inverse relationship between the marginal product of labor and marginal cost.
Learning Objectives
- Absorb the idea of diminishing marginal returns and its repercussions on manufacturing processes.
- Ascertain the situations in which diminishing marginal returns are observed.
- Present an analysis on the impact of increasing and diminishing marginal returns vis-a-vis marginal cost.
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