Figure 12-6
-Refer to Figure 12-6.Which of the following can be inferred from the figure above? (i)Marginal cost is increasing at all levels of output.
(ii)Marginal product is increasing at low levels of output.
(iii)Marginal product is decreasing at high levels of output.

Question

Figure 12-6 
-Refer to Figure 12-6.Which of the following can be inferred from the figure above? (i)Marginal cost is increasing at all levels of output.
(ii)Marginal product is increasing at low levels of output.
(iii)Marginal product is decreasing at high levels of output.

Quizplus · Accepted Answer

The figure shows that marginal product is increasing and then decreasing as output increases, indicating that choice (iii) is true. However, there is no clear indication of whether marginal cost is increasing or decreasing, so choice (i) cannot be inferred. Therefore, the only choice that is supported by the figure is (ii) and (iii) only, which corresponds to answer choice B.

Figure 12-6 -Refer to Figure 12-6.Which of the Following Can Be Inferred