Scenario 13-20
Suppose that a given firm experiences decreasing marginal product of labor with the addition of each worker regardless of the current output level.
-Refer to Scenario 13-20. Marginal cost will be
A)rising at all points.
B)falling at all points.
C)U-shaped.
D)constant.

Question

Quizplus · Accepted Answer

With decreasing marginal product of labor, as more workers are added, each additional worker will add less to the total output than the previous worker. This means that the cost of producing each additional unit of output will increase, causing marginal cost to rise at all points.

Scenario 13-20 Suppose That a Given Firm Experiences Decreasing Marginal Product of Product