Use the Following to Answer Question(s): Short-Run Costs

Multiple Choice

Use the following to answer question(s) : Short-Run Costs

-(Exhibit: Short-Run Costs) Curve A declines from a cost of about $50 and a quantity of 1 to a cost of about $40 and a quantity of 2 (point F) at which time it rises again.The declining segment is due to ________ marginal returns, and the rising segment is due to _______ marginal returns.

A) decreasing; increasing
B) diminishing; increasing
C) increasing; diminishing
D) increasing; constant