If the marginal physical product (MPP)is falling,then the
A)Marginal cost of each unit of output is falling.
B)Marginal cost of each unit of output is rising.
C)Total cost of each unit of output is falling.
D)Total cost of each unit of output is rising.

Question

Quizplus · Accepted Answer

When the MPP is falling, it means that the additional output produced by each additional unit of input is decreasing. This could be due to factors such as a lack of resources or diminishing returns to scale. As a result, the marginal cost of producing each additional unit of output is rising, as it requires more input to produce the same level of output. Therefore, choice B is the correct answer.

If the Marginal Physical Product (MPP)is Falling,then the