Figure 12-3
-Refer to Figure 12-3.Which of the following is true of the production function (not pictured)that underlies this total cost function? (i)Total output increases as the quantity of inputs increases but at a decreasing rate.
(ii)Marginal product is diminishing for all levels of input usage.
(iii)The slope of the production function decreases as the quantity of inputs increases.
A) (i)only
B) (ii)and (iii)only
C) (i)and (iii)only
D) (i),(ii),and (iii)

Question

Figure 12-3 
-Refer to Figure 12-3.Which of the following is true of the production function (not pictured)that underlies this total cost function? (i)Total output increases as the quantity of inputs increases but at a decreasing rate.
(ii)Marginal product is diminishing for all levels of input usage.
(iii)The slope of the production function decreases as the quantity of inputs increases.
A) (i)only 
B) (ii)and (iii)only 
C) (i)and (iii)only 
D) (i),(ii),and (iii)

Quizplus · Accepted Answer

The production function typically shows diminishing marginal returns, meaning total output increases at a decreasing rate as inputs increase, marginal product diminishes, and the slope decreases as inputs increase.

Figure 12-3 -Refer to Figure 12-3.Which of the Following Is True of Is