Asked by Paris Smith on Jul 25, 2024
Verified
The average-total-cost curve is unaffected by diminishing marginal product.
Average-Total-Cost Curve
A graphical representation that shows how the average total cost of production changes as the quantity of output is altered.
Diminishing Marginal Product
A principle stating that as additional units of a variable input are added to a fixed input, the additional output produced from each new unit decreases.
- Acquire knowledge about the principle of diminishing marginal product and how it affects the overall output.
Verified Answer
DH
Diana HenryJul 27, 2024
Final Answer :
False
Explanation :
The average-total-cost curve is affected by diminishing marginal product because as the marginal product of an input decreases, additional units of output become more expensive to produce, causing the average total cost to increase.
Learning Objectives
- Acquire knowledge about the principle of diminishing marginal product and how it affects the overall output.
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