Which of the following is correct?

Question

Quizplus · Accepted Answer

Marginal productivity refers to the additional output produced by adding one unit of input. As the marginal productivity of inputs changes, the marginal cost of production also changes, which in turn affects the average variable and average total cost. Therefore, option A is correct. Option B is incorrect because changes in marginal cost result from changes in marginal productivity and not the other way around. Option C is incorrect because changes in average variable cost affect average total cost directly and do not need to change marginal cost to affect marginal productivity. Option D is partially correct, but it's important to note that changes in average total cost do not directly change marginal productivity unless they are caused by changes in marginal cost.

Which of the Following Is Correct