If the marginal product of an input is falling, then
A) average fixed cost is constant.
B) marginal cost is falling.
C) average total cost is constant.
D) marginal cost is rising.

Question

Quizplus · Accepted Answer

If the marginal product of an input is falling, it means that each additional unit of the input is producing less output than the previous unit. This implies that the cost of producing each additional unit of output (i.e. the marginal cost) is increasing. Therefore, the correct choice is D, which is "marginal cost is rising".

If the Marginal Product of an Input Is Falling, Then