If the marginal product of a variable input rises, there will be a corresponding fall in short-run marginal cost.

Question

Quizplus · Accepted Answer

This is because when the marginal product of a variable input rises, the additional output produced by each additional unit of the input increases. This means that the cost of producing each additional unit of output goes down, leading to a fall in short-run marginal cost.

If the Marginal Product of a Variable Input Rises, There