Figure 13-3
-Refer to Figure 13-3. Which of the following can be inferred from the figure above?
A)Marginal cost is increasing at all levels of output, and marginal product is increasing at low levels of output.
B)Marginal product is increasing at low level of output and decreasing at high level of output.
C)Marginal cost is increasing at all levels of output, and marginal product is decreasing at high level of output.
D)Marginal product is increasing at all levels of output.

Question

Figure 13-3 
-Refer to Figure 13-3. Which of the following can be inferred from the figure above?
A)Marginal cost is increasing at all levels of output, and marginal product is increasing at low levels of output. 
B)Marginal product is increasing at low level of output and decreasing at high level of output. 
C)Marginal cost is increasing at all levels of output, and marginal product is decreasing at high level of output. 
D)Marginal product is increasing at all levels of output.

Quizplus · Accepted Answer

The marginal product typically increases at low levels of output due to efficiencies gained from specialization, but decreases at high levels of output due to diminishing returns.

Figure 13-3 -Refer to Figure 13-3. Which of the Following Can Be