The explanation for why marginal cost is positive and rising in the short run is ________ marginal product of labor in the production process.
A) a zero
B) a constant
C) an increasing
D) a diminishing

Question

Quizplus · Accepted Answer

Diminishing marginal product of labor means that as more labor is added to a fixed amount of capital, the additional output produced by the additional labor decreases. This leads to an increase in the marginal cost of production, as it costs more to produce each additional unit of output.

The Explanation for Why Marginal Cost Is Positive and Rising