There is a link between production and cost. We know this because
A)there are two periods of production, the short run and the long run.
B)what happens to MPP directs what happens to MC.
C)average fixed cost continually declines as output increases.
D)average productivity falls when marginal productivity is below it.
E)none of the above

Question

Quizplus · Accepted Answer

The link between production and cost is evident because the Marginal Physical Product (MPP) influences the Marginal Cost (MC). When MPP increases, MC decreases, and vice versa, showing a direct relationship between production efficiency and the cost of producing an additional unit.

There Is a Link Between Production and Cost