If the slope of the total variable cost curve is increasing, the slope of the total product curve is:
A) increasing.
B) decreasing.
C) unchanged.
D) at its maximum value.

Question

Quizplus · Accepted Answer

If the slope of the total variable cost curve is increasing, it means that the additional cost of producing an additional unit of output is increasing. This implies that the marginal cost is increasing. The slope of the total product curve represents the marginal product of labor, which is the additional output produced by adding one more unit of labor. If the slope of the total variable cost curve is increasing, it means that the marginal cost of producing an additional unit of output is increasing faster than the marginal product of labor. As a result, the slope of the total product curve will decrease.

If the Slope of the Total Variable Cost Curve Is