Asked by
Gosaye Gomole
on Nov 25, 2024
Verified
Because the marginal product of a variable resource at first increases and then decreases as the output of the firm is increased,
A) total cost at first increases at a decreasing rate and then increases at an increasing rate.
B) total variable cost at first increases at an increasing rate and then increases at a decreasing rate.
C) average total cost at first increases and then diminishes.
D) average fixed cost will rise beyond the point of diminishing returns.
Marginal Product
The additional output that can be produced by adding one more unit of a specific input, holding all other inputs constant.
Total Cost
The total of all costs associated with producing goods or services, encompassing both constant and fluctuating expenses.
Total Variable Cost
The overall expense that changes in direct proportion to the quantity of output produced or services offered.
- Assess the dynamics of cost curves in the short period and the economic principles behind them.
- Absorb the fundamentals of growing and declining marginal yields and their consequences for cost implications.
Verified Answer
MM
Learning Objectives
- Assess the dynamics of cost curves in the short period and the economic principles behind them.
- Absorb the fundamentals of growing and declining marginal yields and their consequences for cost implications.