As output rises, marginal product eventually diminishes and
A) marginal cost increases.
B) total cost falls.
C) fixed cost increases.
D) average product becomes negative.

Question

Quizplus · Accepted Answer

As output rises, the marginal product of an input eventually diminishes due to the law of diminishing returns, leading to an increase in marginal cost because each additional unit of output requires more input, raising the cost of production.

As Output Rises, Marginal Product Eventually Diminishes and