If a particular production process is subject to diminishing marginal returns to labor at every level of output,then at every level of output
A)AC is upward sloping.
B)MC exceeds AVC.
C)AFC is constant.
D)All of the above.

Question

Quizplus · Accepted Answer

Diminishing marginal returns imply that each additional unit of labor adds less to output, causing marginal cost (MC) to rise. When MC is rising, it can exceed average variable cost (AVC).

If a Particular Production Process Is Subject to Diminishing Marginal