If the marginal physical product (MPP) of the variable input is constant over a range of output, then it follows that __________ cost will be constant over the same range of output.
A)marginal
B)average fixed
C)average total
D)a and b
E)a, b, and c

Question

Quizplus · Accepted Answer

When the marginal physical product (MPP) of a variable input is constant, it means that each additional unit of input adds the same amount to total output. This implies that the cost of producing one more unit of output (marginal cost) remains constant, as the input required to produce each additional unit does not change. Average fixed cost and average total cost are not directly influenced by the constancy of MPP in the same manner.

If the Marginal Physical Product (MPP) of the Variable Input