Question

The short-run average product of a variable input has an inverse relationship with the:

Answers:	a) average fixed cost.
	b) average total cost.
	c) average variable cost.
	d) total cost.

The short-run marginal cost:

Answers:	a) intersects the maximum points of the average variable cost and the average total cost curves.
	b) is defined as the difference between total cost and total variable cost.
	c) falls for a time, but then begins to rise when the point of diminishing returns is reached.
	d) rises for a time, but then begins to fall when the point of diminishing returns is reached.

Answer 1

Q1
Answer
Option C
Average variable costs

Average variable costs =cost of input /average product of a variable input
so the average product of variable input and Average variable costs are inversely related.
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Q2
Answer
Option c
falls for a time, but then begins to rise when the point of diminishing returns is reached.

marginal cost =input cost /marginal product
MC increases as the MP starts falling.
So it falls for a time but then begins to rise when the point of diminishing returns is reached.