Which of the following most accurately describes what must be occurring if marginal cost is increasing?
A) Average total cost must be decreasing.
B) Marginal product must be decreasing.
C) Average variable cost must be increasing.
D) Average variable cost must be decreasing.

Question

Quizplus · Accepted Answer

Marginal cost increases when the marginal product of labor decreases, due to the law of diminishing returns. This means that each additional unit of input produces less output than the previous unit, leading to higher costs for producing each additional unit.

Which of the Following Most Accurately Describes What Must Be