Figure 13-8
-Refer to Figure 13-8.Which of the above marginal cost curves reflects diminishing marginal product?

Question

Figure 13-8 
-Refer to Figure 13-8.Which of the above marginal cost curves reflects diminishing marginal product?

Quizplus · Accepted Answer

Marginal cost reflects the additional cost of producing one more unit of output. When the marginal product (the additional output per additional unit of input) begins to decrease, the marginal cost begins to increase rapidly, which is known as diminishing marginal product. In the given graph, curve A starts to increase rapidly after a certain point, indicating diminishing marginal product. Therefore, A reflects diminishing marginal product.

Figure 13-8 -Refer to Figure 13-8.Which of the Above Marginal Cost Curves