Which of the following is true of the relationship between marginal cost and marginal product?
A)Marginal product and marginal cost are not related with each other.
B)When marginal product increases, marginal cost increases.
C)When marginal product increases, marginal cost falls.
D)When marginal product is negative, marginal cost is negative.
E)When diminishing marginal returns set in, marginal cost falls.

Question

Which of the following is true of the relationship between marginal cost and marginal product?​
A)Marginal product and marginal cost are not related with each other.
B)When marginal product increases, marginal cost increases.
C)When marginal product increases, marginal cost falls.
D)When marginal product is negative, marginal cost is negative.
E)When diminishing marginal returns set in, marginal cost falls.

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.

Which of the Following Is True of the Relationship Between