When marginal product is increasing: Marginal cost is increasing c. marginal cost is constant Marginal cost is...

When marginal product is increasing:
1. Marginal cost is increasing c. marginal cost is constant
2. Marginal cost is decreasing d average product is decreasing

Expert Solution

When marginal product is increasing

b. Marginal cost is decreasing

Reason

When marginal product increases, marginal cost is decreasing because more output can be produced with less inputs. The additional worker employed are more productive and it will help to produce more quantity of output by using lesser inputs. The marginal cost curve is U shaped due to law of variable proportion. According to this law marginal product first increases and then decreases ,due to which marginal cost first decreases and then increases.

Rahul Sunny answered 2 years ago

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