Scenario 12-17
Suppose that a given firm experiences decreasing marginal product of labor with the addition of each worker regardless of the current output level.
-Refer to Scenario 12-17.Marginal cost will be

Question

Quizplus · Accepted Answer

Since marginal product of labor is decreasing, each additional worker would add less to the total output compared to the previous worker. Thus, the cost of adding a new worker would be higher than before, leading to a rise in marginal cost at all points.

Scenario 12-17 Suppose That a Given Firm Experiences Decreasing Marginal Product of Product