In the one-input model, a convex producer choice set implies an upward sloping marginal cost curve.

Name: In the one-input model, a convex producer choice set implies an upward sloping marginal cost curve.
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Question

Quizplus · Accepted Answer

In the one-input model, a convex producer choice set implies diminishing marginal returns to the input. Diminishing marginal returns, in turn, imply an upward sloping marginal cost curve. Therefore, the statement is true.

In the One-Input Model, a Convex Producer Choice Set Implies