When the price of an input is constant:
A) the marginal cost of the input is equal to its price.
B) the marginal cost of the input is increasing.
C) the marginal cost of the input is variable.
D) the marginal cost of the input is decreasing.
E) the marginal cost of the input decreases over the initial range of output and then becomes and remains constant.

Question

Quizplus · Accepted Answer

When the price of an input is constant, the marginal cost of the input is equal to its price. This is because the cost of each additional unit of the input remains the same.

When the Price of an Input Is Constant