Which of the following is true at the point where diminishing returns set in?
A) Both marginal product and marginal cost are at a maximum.
B) Both marginal product and marginal cost are at a minimum.
C) Marginal product is at a maximum and marginal cost is at a minimum.
D) Marginal product is at a minimum and marginal cost is at a maximum.

Question

Quizplus · Accepted Answer

At the point where diminishing returns set in, the marginal product of an input reaches its maximum, meaning any additional input will produce less output than the previous units. Consequently, the marginal cost, which is the cost of producing one more unit of output, is at its minimum because it starts to increase as the output per unit of input decreases.

Which of the Following Is True at the Point Where