A fixed input, X, and a variable input, Y, are used to produce good A. If the marginal physical product (MPP) of Y is constant, it follows that the
A)marginal cost curve is upward sloping.
B)total fixed cost curve is vertical.
C)total variable cost curve is downward sloping.
D)b and c
E)none of the above

Question

Quizplus · Accepted Answer

If the marginal physical product (MPP) of Y is constant, it implies that each additional unit of Y adds the same amount to total output. This does not directly imply that the marginal cost curve is upward sloping, nor does it affect the shape of the total fixed cost curve (which is always horizontal because fixed costs do not change with output) or the total variable cost curve (which would be linear and upward sloping due to the constant addition to costs from using more of Y, not downward sloping).

A Fixed Input, X, and a Variable Input, Y, Are