Asked by
Archana Naithani
on Dec 11, 2024
Verified
As output rises, marginal product eventually diminishes and
A) marginal cost increases.
B) total cost falls.
C) fixed cost increases.
D) average product becomes negative.
Marginal Cost Increases
The rise in the cost to produce one additional unit of a good or service.
Marginal Product
The additional output that is produced as a result of adding one more unit of a specific input, holding all other inputs constant.
Total Cost
The overall expense incurred in the production of goods or services, combining both fixed and variable costs.
- Acquire knowledge on the concept of diminishing returns and its effects on manufacturing outputs.
- Comprehend the effect that the marginal output of labor has on production costs and levels.
Verified Answer
AV
Learning Objectives
- Acquire knowledge on the concept of diminishing returns and its effects on manufacturing outputs.
- Comprehend the effect that the marginal output of labor has on production costs and levels.