For a particular production function,over the range of output where marginal product rises as units of the variable input are added to the fixed input,marginal cost will be:
A)increasing.
B)constant.
C)decreasing.
D)cannot be determined without additional information.

Question

Quizplus · Accepted Answer

As the marginal product of the variable input is increasing, it means the additional input is adding more output, which lowers the average fixed cost. Therefore, the marginal cost will decrease.

For a Particular Production Function,over the Range of Output Where