Figure 13-6
-Refer to Figure 13-6. Which of the following can be inferred from the figure above? (i)
Marginal cost is increasing at all levels of output.
(ii)
Marginal product is increasing at low levels of output.
(iii)
Marginal product is decreasing at high levels of output.
A)(i) and (ii) only
B)(ii) and (iii) only
C)(i) and (iii) only
D)(ii) only

Question

Figure 13-6 
-Refer to Figure 13-6. Which of the following can be inferred from the figure above? (i)
Marginal cost is increasing at all levels of output.
(ii)
Marginal product is increasing at low levels of output.
(iii)
Marginal product is decreasing at high levels of output.
A)(i) and (ii) only 
B)(ii) and (iii) only 
C)(i) and (iii) only 
D)(ii) only

Quizplus · Accepted Answer

Marginal product typically increases at low levels of output due to efficiencies gained from specialization, and decreases at high levels of output due to diminishing returns.

Figure 13-6 -Refer to Figure 13-6. Which of the Following Can Be