Asked by Christopher Severson on Jul 30, 2024
Verified
If Marie Marionettes is operating under conditions of diminishing marginal product,the marginal costs will be:
A) equal to average total cost.
B) decreasing.
C) increasing.
D) constant.
Diminishing Marginal Product
The principle that as more of a variable input is added to a fixed input, the additional output gained from each new unit of input will eventually decrease.
Marginal Costs
The extra expense associated with manufacturing an additional unit of a product or service.
- Acquire knowledge of the law of diminishing marginal returns and its consequences for production.
- Expound on the relationship between ascending and descending marginal returns and marginal cost.
Verified Answer
ZK
Zybrea KnightAug 03, 2024
Final Answer :
C
Explanation :
Under conditions of diminishing marginal product, each additional unit of input results in a smaller increase in output. This means that the marginal cost of production will increase as more inputs are added to the production process. Therefore, choice C is the correct answer.
Learning Objectives
- Acquire knowledge of the law of diminishing marginal returns and its consequences for production.
- Expound on the relationship between ascending and descending marginal returns and marginal cost.