Suppose that one fixed and one variable input are used to produce good X. As the marginal physical product of the variable input increases, the marginal cost
A)increases.
B)decreases.
C)remains constant.
D)There is not enough information to answer the question.

Question

Quizplus · Accepted Answer

When the marginal physical product of the variable input increases, it means that each additional unit of input is producing more output. This leads to a decrease in the marginal cost of production, as less input is needed to produce each additional unit of output.

Suppose That One Fixed and One Variable Input Are Used