Which of the following relationships is correct?
A)When marginal product starts to decrease,marginal cost starts to decrease.
B)When marginal cost starts to increase,average cost starts to increase.
C)When marginal cost starts to increase,average variable cost starts to increase.
D)When marginal product starts to decrease,marginal cost starts to increase.

Question

Quizplus · Accepted Answer

When marginal product starts to decrease, it means that additional units of input are producing lesser levels of output. This leads to higher marginal cost as more inputs are required for the same level of output. Therefore, as marginal product decreases, marginal cost increases.

Which of the Following Relationships Is Correct