When the average product of the variable input is equal to the marginal product, a

Economics Dec 07, 2020

When the average product of the variable input is equal to the marginal product,

a. marginal cost reaches its minimum value.

b. average variable cost reaches its minimum value.

c. marginal cost is rising.

d. Both a and c.

e. Both b and c.

Expert Solution

When the average product of the variable input is equal to the marginal product, e. Both b and c.

When the average product of the variable input is equal to the marginal product, the average product is at its maximum.
When the average product is at its maximum, the average variable cost reaches its minimum.
Marginal cost is equal to the average variable cost at its minimum, at which marginal cost is rising.

Hence the correct option is e.

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