There is a link between production and cost. We know this because
A)there are two periods of production, the short run and the long run.
B)what happens to MPP directs what happens to MC.
C)average fixed cost continually declines as output increases.
D)average productivity falls when marginal productivity is below it.

Question

Quizplus · Accepted Answer

The relationship between marginal product of labor (MPP) and marginal cost (MC) is a fundamental principle in production theory. As MPP increases, MC decreases, and as MPP decreases, MC increases. This implies that there is a link between production and cost - as production increases, costs also tend to increase.

There Is a Link Between Production and Cost