If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ?
Correct answer: C. becomes steeper as the quantity of output increases
- A. is liner (a straight line)
- B. could be any of these answers
- C. becomes steeper as the quantity of output increases
- D. become flatter as the quantity of output increases.
Explanation
Diminishing marginal product means each additional input produces less extra output, so producing additional units requires increasingly more input and raises marginal cost. Since marginal cost is the slope of the total-cost curve, that curve becomes steeper.
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