When total product is rising
A) fixed cost must be rising.
B) marginal product must be positive.
C) variable cost must be declining.
D) marginal product must be negative.

Question

Quizplus · Accepted Answer

When total product is rising, it means that the output or quantity of production is increasing. Marginal product refers to the additional output that can be produced by adding one more unit of an input (labor, capital, etc.). Therefore, if total product is rising, it must be that marginal product is positive, indicating that each additional unit of input is contributing to an increase in output. Fixed cost refers to costs that do not vary with the level of production, so they are not necessarily rising when total product is rising. Variable cost refers to costs that do vary with the level of production, but they may or may not be declining depending on the specific situation. Lastly, marginal product cannot be negative when total product is rising, as that would mean that adding more input would be reducing output, which is counterintuitive.

When Total Product Is Rising