Which of the following statements is false:

CA Foundation · Business Economics · MTP · September 2024
Which of the following statements is false:
(A) A. When MP rises, TVC increases at an increasing rate.
(B) B. When MP rises, TVC increases at a diminishing rate.
(C) C. When MP becomes constant, TVC increases at a constant rate.
(D) D. When MP falls, TVC increases at a increasing rate.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. When MP rises, TVC increases at a diminishing rate.

Topics: Theory of Production and Cost

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