Figure 13-2
The figure below depicts a total cost function for a firm that produces cookies.

-Refer to Figure 13-2.Which of the following is true of the production function (not pictured)that underlies this total cost function? (i) Total output increases as the quantity of inputs increases,but at a decreasing rate.
(ii. Marginal product is diminishing for all levels of input usage.
(iii) The slope of the production function decreases as the quantity of inputs increases.

Question

Figure 13-2
The figure below depicts a total cost function for a firm that produces cookies.
 
-Refer to Figure 13-2.Which of the following is true of the production function (not pictured)that underlies this total cost function? (i)	Total output increases as the quantity of inputs increases,but at a decreasing rate.
(ii.	Marginal product is diminishing for all levels of input usage.
(iii)	The slope of the production function decreases as the quantity of inputs increases.

Quizplus · Accepted Answer

The production function typically shows diminishing returns, meaning total output increases at a decreasing rate as inputs increase, marginal product diminishes, and the slope decreases with more input.

Figure 13-2 the Figure Below Depicts a Total Cost Function for a for a Firm