If a particular production process is subject to diminishing marginal returns to labor at every level of output, then at every level of output
A)AC is upward sloping.
B)MC exceeds AVC.
C)AFC is constant.
D)None of the above.

Question

Quizplus · Accepted Answer

Diminishing marginal returns to labor imply that each additional unit of labor adds less to output than the previous unit, affecting the marginal cost (MC) but not necessarily making average cost (AC) always upward sloping, MC always exceeding average variable cost (AVC), or average fixed cost (AFC) constant at every level of output.

If a Particular Production Process Is Subject to Diminishing Marginal