In the short run, if the marginal product of labor is decreasing, then:
A) marginal cost must be increasing.
B) the marginal revenue of the firm must be decreasing.
C) average total cost must be increasing.
D) average variable cost must be decreasing.
E) average total cost must be decreasing. the marginal revenue product of labor must be increasing.

Question

Quizplus · Accepted Answer

When the marginal product of labor is decreasing, it means that each additional unit of labor is adding less output than the previous unit. This leads to an increase in the marginal cost of producing each additional unit of output, as more resources (labor) are required to produce the same amount of output.

In the Short Run, If the Marginal Product of Labor