In the short run,marginal cost is increasing when A) MP_L is decreasing. B) MP_L is increasing. C) AP_L is increasing. D) AP_L is decreasing.

Name: In the short run,marginal cost is increasing when A) MP L is decreasing. B) MP L is increasing. C) AP L is increasing. D) AP L is decreasing.
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

Quizplus · Accepted Answer

Marginal cost increases when the marginal product of labor (MPL) is decreasing, as it implies that each additional unit of output requires more input, making it more costly to produce.

In the Short Run,marginal Cost Is Increasing When