What is the relationship between marginal cost and marginal product?
A)The two are not related.
B)When marginal product increases, marginal cost increases.
C)When marginal product increases, marginal cost falls.
D)When marginal product is negative, marginal costs are negative.
E)When diminishing marginal returns set in, marginal costs fall.

Question

Quizplus · Accepted Answer

When marginal product increases, it means that each additional unit of input is producing more output, which typically leads to a decrease in marginal cost because the cost of producing each additional unit of output is lower.

What Is the Relationship Between Marginal Cost and Marginal Product