Diminishing marginal productivity implies
A)decreasing marginal costs
B)increasing marginal costs
C)decreasing average costs
D)decreasing total costs

Question

Diminishing marginal productivity implies​
A)​decreasing marginal costs
B)increasing marginal costs
C)decreasing average costs
D)​decreasing total costs

Quizplus · Accepted Answer

Diminishing marginal productivity means that as more units of input are added to production, the additional output produced will eventually decrease. This leads to increasing marginal costs, as more input is needed to produce each additional unit of output.

Diminishing Marginal Productivity Implies​

Diminishing Marginal Productivity Implies