Asked by Duncan Jackman on Jul 24, 2024
Verified
Diminishing marginal product exists when the total cost curve becomes horizontal as outputs increases.
Marginal Product
The additional output resulting from using one more unit of a given input, holding all other inputs constant.
Total Cost Curve
Represents the total economic cost of production, which is the sum of fixed and variable costs at different levels of output.
- Comprehend how diminishing marginal productivity influences the total product in contrast to its impact on total cost.
Verified Answer
EN
Emrie NesimiJul 29, 2024
Final Answer :
False
Explanation :
Diminishing marginal product occurs when adding an additional factor of production results in a smaller increase in output, not when the total cost curve becomes horizontal. The total cost curve becoming horizontal would imply constant costs, not diminishing productivity.
Learning Objectives
- Comprehend how diminishing marginal productivity influences the total product in contrast to its impact on total cost.
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