Refer to the accompanying graph to answer the following questions.

-The firm is experiencing diminishing marginal product beyond what level of output along the marginal cost curve?

Question

Refer to the accompanying graph to answer the following questions.
 
-The firm is experiencing diminishing marginal product beyond what level of output along the marginal cost curve?

Quizplus · Accepted Answer

Diminishing marginal product occurs when additional units of a variable input (e.g., labor) added to fixed inputs (e.g., capital) result in smaller increases in output. This is reflected in the marginal cost curve as an upward slope beyond a certain level of output, indicating that it costs more to produce each additional unit. The correct level of output at which diminishing marginal product begins is represented by the code in option B, which decodes to "11," suggesting that beyond this level of output, the firm experiences diminishing marginal returns.

Refer to the Accompanying Graph to Answer the Following Questions