A fixed input, X, and a variable input, Y, are used to produce good A. If the marginal physical product (MPP)of Y is constant, it follows that the __________________, ceteris paribus.
A)marginal cost curve is upward sloping.
B)total fixed cost curve is vertical.
C)total variable cost curve is downward sloping.
D)marginal cost curve is horizontal.

Question

A fixed input, X, and a variable input, Y, are used to produce good A. If the marginal physical product (MPP)of Y is constant, it follows that the __________________,  ceteris paribus.
A)marginal cost curve is upward sloping.
B)total fixed cost curve is vertical.
C)total variable cost curve is downward sloping.
D)marginal cost curve is horizontal.

Quizplus · Accepted Answer

Since the MPP of Y is constant, the marginal cost of production will remain constant as well. This means the marginal cost curve will be horizontal, and not upward sloping (A), vertical (B), or downward sloping (C).

A Fixed Input, X, and a Variable Input, Y, Are