Figure 12-4
-Refer to Figure 12-4.Which of the above marginal cost curves reflects diminishing marginal product?

Question

Figure 12-4 
-Refer to Figure 12-4.Which of the above marginal cost curves reflects diminishing marginal product?

Quizplus · Accepted Answer

Marginal cost is the change in total cost divided by the change in output. Diminishing marginal product means that as more of a variable input is added, the additional output produced by each additional unit of the variable input decreases. This means that the marginal cost of producing each additional unit of output will increase. Therefore, the marginal cost curve that reflects diminishing marginal product is the one that is upward sloping.

Figure 12-4 -Refer to Figure 12-4.Which of the Above Marginal Cost Curves