Question

12. Here are several statements about cost curves: I. Falling marginal product of labour helps explain the positive slope of part of the marginal cost curve and part of the average cost curve II. Fixed costs help explain the negative slope of part of the average cost curve III. Rising average product of labour helps explain the positive slope of part of the average variable cost curve Which of the above statements are true? (A) I only (B) II only (C) III only (D) I and II (G) I and II and III (H) none of the above (E) I and III (F) II and III