Diminishing marginal product suggests that
A)additional units of output become less costly as more output is produced.
B)marginal cost is upward sloping.
C)the firm is at full capacity.
D)adding additional workers will lower total cost.

Question

Quizplus · Accepted Answer

Diminishing marginal product occurs when adding additional units of a variable input (such as labor) results in a smaller increase in output. This means that at some point, the marginal cost of producing additional units of output will increase, resulting in upward-sloping marginal cost. Therefore, option B is the correct choice. Options A, C, and D are not related to diminishing marginal product.

Diminishing Marginal Product Suggests That