Diminishing marginal product:
A)causes the variable cost curve to become flatter.
B)causes the variable cost curve to become steeper.
C)has no relation to the variable cost curve.
D)causes the fixed cost curve to become flatter.

Question

Quizplus · Accepted Answer

Diminishing marginal product implies that as more units of a variable input are added to fixed inputs, the additional output produced by each new unit of input decreases. This leads to an increase in the variable cost per additional unit of output, causing the variable cost curve to become steeper as more units are produced.

Diminishing Marginal Product