When marginal product is rising,marginal cost will be:

Question

Quizplus · Accepted Answer

When marginal product is rising, it means that each additional unit of input is bringing in more output. As a result, the marginal cost will be falling because there is an increase in productivity without a corresponding increase in cost. Marginal cost is the additional cost of producing one more unit of output. Therefore, if the productivity is increasing, the cost of producing additional units of output should be reduced, leading to a fall in marginal cost.

When Marginal Product Is Rising,marginal Cost Will Be