Marginal product is highest where marginal cost is lowest.

Question

Quizplus · Accepted Answer

This statement is true according to the principles of economics. Marginal product refers to the additional output that is obtained by adding one more unit of input, while marginal cost refers to the additional cost incurred by producing one more unit of output. When marginal product is highest, it means that adding one more unit of input is contributing the most to overall output, and therefore the marginal cost of producing an additional unit is likely to be lower. Thus, the lowest point on the marginal cost curve typically corresponds to the highest point on the marginal product curve.

Marginal Product Is Highest Where Marginal Cost Is Lowest