Graph 13-5 The set of curves above reflect information about the cost structure of a firm.Use this graph to answer the following question(s).
-Refer to Graph 13-5.Curve A is necessarily U-shaped because of:
A)diminishing marginal product
B)increasing marginal product
C)the fact that decreasing marginal product follows increasing marginal product
D)the fact that increasing marginal product follows decreasing marginal product

Question

Graph 13-5  The set of curves above reflect information about the cost structure of a firm.Use this graph to answer the following question(s).
-Refer to Graph 13-5.Curve A is necessarily U-shaped because of:
A)diminishing marginal product 
B)increasing marginal product 
C)the fact that decreasing marginal product follows increasing marginal product 
D)the fact that increasing marginal product follows decreasing marginal product

Quizplus · Accepted Answer

Curve A is necessarily U-shaped because of the economic principle that decreasing marginal product follows increasing marginal product. Initially, as more of a variable input is added to a fixed input, the marginal product (additional output from an additional unit of input) increases due to better utilization of the fixed inputs. However, after a certain point, adding more of the variable input leads to a decrease in the marginal product due to factors such as overcrowding or inefficiencies, hence the U-shape of the curve.

Graph 13-5 the Set of Curves Above Reflect Information