Which of the following is true at the output level where diminishing marginal product first set in?
A) Both marginal product and marginal cost are at a minimum.
B) Both marginal product and marginal cost are at a maximum.
C) Marginal product is at a maximum and marginal cost is at a minimum.
D) Marginal product is at a minimum and marginal cost is at a maximum.

Question

Quizplus · Accepted Answer

Diminishing marginal product begins when the marginal product reaches its maximum and starts to decline, which corresponds to the point where marginal cost is at its minimum.

Which of the Following Is True at the Output Level