If the productivity of variable factors is decreasing in the short-run: a. Marginal cost must...

Question:

If the productivity of variable factors is decreasing in the short-run:

a. Marginal cost must increase as output increases.

b. Average cost must decrease as output increases.

c. Average cost must increase as output increases.

d. Marginal cost must be decrease as output increases.

What Is The Marginal Cost:

The concept of Marginal Cost is central to Economic decision-making, especially in the short-run. A firm's Marginal Cost can be thought of as the additional cost incurred in order to produce one additional unit of the good or service produced.

Answer and Explanation: 1

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The correct answer is a. Marginal cost must increase as output increases.

  • If productivity rates fall for variable factors, this means that it takes m...

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Marginal Cost: Definition, Equation & Formula

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Chapter 3 / Lesson 12
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What is marginal cost? Learn how to calculate marginal cost with the marginal cost formula. See the definition, behavior, and marginal cost examples.


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