Question

Given below are two statements:
Statement-I : In the short-run, the rising part of the marginal cost curve is due to diminishing marginal product.
Statement-II : In the short-run, the falling part of the marginal cost curve implies existence of diminishing marginal product.
In the light of the above statements, choose the correct answer from the options given below:

• A. Both Statement I and Statement II are true
• B. Both Statement I and Statement II are false
• C. Statement I is true but Statement II is false
• D. Statement I is false but Statement II is true

Answer 1

Answer: (C)

Statement I is true but Statement II is false

Answer 2

The correct answer is (C) : Statement I is true but Statement II is false.