Decreasing marginal product implies decreasing marginal costs.

Name: Decreasing marginal product implies decreasing marginal costs.
Brand: Quizplus
Rating: 4.8 (57 reviews)

Question

Quizplus · Accepted Answer

Decreasing marginal product means that each additional unit of input produces less output than the previous unit, which leads to an increase in marginal costs (the additional cost of producing each additional unit of output). Therefore, decreasing marginal product implies increasing marginal costs rather than decreasing.

Decreasing Marginal Product Implies Decreasing Marginal Costs