This question tests your understanding of production, costs, revenue, and profit, and the distinction between the short run and the long run.

Which statement below is TRUE?

Group of answer choices

A Average product equals marginal product where MP is highest, and average (variable) cost equals marginal cost where MC is lowest.

B Marginal product equals average product where AP is highest, and marginal cost equals average (variable) cost where average (variable) cost is lowest.