When marginal product is decreasing, marginal cost is
A)less than zero
B)equal to zero
C)constant
D)decreasing
E)increasing

Question

Quizplus · Accepted Answer

When marginal product is decreasing, it means that each additional unit of input is producing less output than the previous unit. This leads to an increase in the marginal cost of production because the cost of producing each additional unit is rising. Therefore, as marginal product decreases, marginal cost increases, making option E the correct choice.

When Marginal Product Is Decreasing, Marginal Cost Is