Which of the Following Explains Why the Marginal Cost Curve

question 107

Multiple Choice

Which of the following explains why the marginal cost curve has a U shape?

• A) Initially, the marginal product of labour falls, then rises.
• B) Initially, the average product of labour rises, then falls.
• C) Initially, the marginal product of labour rises, then falls.
• D) Initially, the average cost of production rises, then falls.

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Definitions:

Voluntary Labor

Work undertaken by choice or without financial compensation; often in the context of volunteerism or unpaid internships.

Management Practices

The actions, strategies, and methods employed by managers to achieve organizational objectives and improve performance.

Competitive Pricing

A pricing strategy where a company sets the price of its products or services based on the prices of competitors.

Sustainable Competitive Advantage

A unique advantage that allows an organization to outperform its competitors over a long period.