Question

Which of the statements is not true? A marginal cost curve will always intersect the average total cost curve at the minimum average total cost. Marginal cost and marginal productivity are inversely related. Costs that are small and unimportant with little impact on profits are called marginal costs. Marginal cost is the change in a firm's total cost due to a one‑unit change in output.

Answer 1

Answer: The correct answer is "Costs that are small and unimportant with little impact on profits are called marginal costs."

Explanation: The statement "Costs that are small and unimportant with little impact on profits are called marginal costs." Is not TRUE because as the following statement says the marginal cost is the change in a firm's total cost due to a one‑unit change in output.