Which of the Following Statements About Marginal Cost Is Correct

question 43

Multiple Choice

Which of the following statements about marginal cost is correct?

• A)When the marginal product of a variable input is rising,the marginal cost will fall.
• B)When marginal cost equals average cost,average cost is at its maximum.
• C)In the short-run,the marginal cost curve is parallel to the average variable cost curve.
• D)When marginal cost is falling,total fixed cost is rising.

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Definitions:

Balance-of-Payment Deficits

A situation in the balance of payments where the payments made by a country for its imports, investments abroad, and other outflows are greater than the inflows from exports, foreign investments, etc.

Japanese Yen

The official currency of Japan, known globally as a major currency for trade and finance.

U.S. Goods

Products that are produced, manufactured, or assembled in the United States.

Foreign Capital Inflow

The entry of investment from external sources into a country, typically in the form of foreign direct investment (FDI), portfolio investment, or loans, contributing to economic development.