Marginal Cost Curve in the Short Run?

Question

Suppose the marginal cost curve in the short run first decreases, then reaches a minimum, and then increases. If we are at an output where marginal cost is decreasing, then:

a) Marginal product must be increasing.

b) Average variable cost must be decreasing

c) Average total cost must be increasing

d) both a and b are correct.

Answer 1

d) both a and b are correct.

Marginal product is the inverse of marginal cost, and if marginal cost is decreasing, each good costs less to make, so average variable cost must also be decreasing