If the marginal product of labour is decreasing, then marginal cost of production must be rising.

Name: If the marginal product of labour is decreasing, then marginal cost of production must be rising.
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Question

Quizplus · Accepted Answer

When the marginal product of labour decreases, each additional unit of labor contributes less to output, which means that the cost of producing each additional unit of output increases, leading to a rise in the marginal cost of production. Therefore, the statement is true.

If the Marginal Product of Labour Is Decreasing, Then Marginal