Asked by
Ammar Ishaq
on Dec 11, 2024Verified
When the marginal product of labor diminishes,
A) average fixed cost rises.
B) average variable cost is constant.
C) marginal cost rises.
D) average total cost must rise.
E) total cost rises at a diminishing rate.
Marginal Product
Describes the additional output that is produced by using one more unit of a factor of production, holding all other factors constant.
Marginal Cost
The supplementary cost that arises when one additional unit of a product or service is produced.
- Recognize how the marginal product of labor impacts cost and production levels.
Verified Answer
BB
Learning Objectives
- Recognize how the marginal product of labor impacts cost and production levels.