Answer (B) is correct . Marginal product is the output obtained by adding one extra unit of a variable input factor. If the cost of the input factor is constant, a rising marginal product will result in a declining marginal cost of output. If marginal product is falling, marginal cost is rising. Hence, marginal cost is at a minimum when marginal product is at a maximum.
Answer (A) is incorrect because The point of diminishing average productivity is the point at which average productivity begins to decline as additional units of input are used.
Answer (C) is incorrect because Marginal cost is the addition to total cost as a result of increasing production by one unit.
Answer (D) is incorrect because The point of diminishing marginal productivity is that point at which marginal productivity begins to decline as additional inputs are added to production.
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