If Marie Marionettes is operating under the conditions of diminishing marginal product,the marginal costs will be:
A) equal to average total cost.
B) decreasing.
C) increasing.
D) constant.

Question

Quizplus · Accepted Answer

Under diminishing marginal product, each additional unit of input leads to a smaller increase in output. This means that the marginal cost of producing each additional unit increases as well. Therefore, the correct answer is C, as marginal costs are increasing.

If Marie Marionettes Is Operating Under the Conditions of Diminishing