Which of the following statements is true?
A. When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls.
B. The marginal product is the output per unit of a variable input.
C. Average variable cost and average fixed cost are U-shaped curves.
D. When marginal productivity of a variable input is falling then marginal costs of production must be rising.
Answer: D
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