''if there are diminishing returns, the marginal cost curve must be positively sloped '' is true or fall, why?

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01-08-2021
Business

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''if there are diminishing returns, the marginal cost curve must be positively sloped '' is true or fall, why?

Sagot :

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PiaDeveau PiaDeveau · Answer 1 · 2021-08-10T03:41:06-04:00

Answer to the following question is TRUE.

The given statement "If average cost rises, marginal cost should rise" is correct.

This is because, according to theory, as the estimated price of an item rises, the marginal cost rises more than that rise. And, as the illustration of these two curves shows, when Average Cost grows, so does Marginal Cost.

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