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Ammar Ishaq
on Dec 11, 2024

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When the marginal product of labor diminishes,

A) average fixed cost rises.
B) average variable cost is constant.
C) marginal cost rises.
D) average total cost must rise.
E) total cost rises at a diminishing rate.

Marginal Product

Describes the additional output that is produced by using one more unit of a factor of production, holding all other factors constant.

Marginal Cost

The supplementary cost that arises when one additional unit of a product or service is produced.

  • Recognize how the marginal product of labor impacts cost and production levels.
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Bryan BenaventDec 16, 2024
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