Marginal cost:
A)is the total cost of producing each unit of output
B)is the change in total cost divided by the change in average product
C)rises as long as marginal product continues to fall
D)is average product divided by the change in total cost
E)is marginal product divided by the change in total cost

Question

Quizplus · Accepted Answer

Marginal cost increases when the marginal product of labor decreases because it costs more to produce each additional unit of output when each worker is adding less to the total output.

Marginal Cost