Which of the following statements is true? If the marginal product of labor diminishes,
A)average fixed cost rises
B)average variable cost is constant
C)marginal cost rises
D)average total cost must rise
E)total cost rises at a diminishing rate

Question

Quizplus · Accepted Answer

When the marginal product of labor diminishes, it means that each additional unit of labor adds less to output than the previous one. This typically leads to an increase in marginal cost, as each additional unit of output becomes more expensive to produce.

Which of the Following Statements Is True? If the Marginal