Suppose a Given Marginal Cost Curve Starts Out Downward Sloping

question 44

Multiple Choice

Suppose a given marginal cost curve starts out downward sloping and at some level of output turns upward and becomes upward sloping. The point at which it turns upward is the point at which

• A)marginal physical product increases.
• B)total cost rises.
• C)average fixed cost declines.
• D)average variable cost is below marginal cost.
• E)diminishing marginal returns set in.

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