When the marginal product is increasing as the quantity increases,then as the quantity increases the
A) average product is decreasing.
B) marginal cost is decreasing.
C) total cost is decreasing.
D) total product is decreasing.
E) fixed cost is increasing.

Question

Quizplus · Accepted Answer

When marginal product is increasing, it means each additional unit of input is producing more output than the previous unit. This also implies that the marginal cost of producing each additional unit is decreasing, as the additional unit requires less input to produce than the previous unit. Therefore, as the quantity increases, the marginal cost is decreasing.

When the Marginal Product Is Increasing as the Quantity Increases,then