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What will be the slope of the corresponding total-cost curve if a production function exhibits diminishing marginal product?

What will be the slope of the corresponding total-cost curve if a production function exhibits diminishing marginal product?

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Asked by Abdulwaris, Last updated: Nov 14, 2024

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2 Answers

N. Kingsley

N. Kingsley

N. Kingsley
N. Kingsley, Writer, Columbus

Answered Feb 20, 2019

If a production exhibits diminishing marginal product, the slope of the corresponding total – cost curve will become steeper as the number of output increases.

The law of diminishing marginal product shows an increase in one production variable while other production variable remain constant will initially increase overall output but will generate less output as more of that variable is added.

This simply means, increasing one variable will only increase output to a certain point.
As quantity of output increases, the curve becomes steeper and not flatter or linear.

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John Smith

John Smith

John Smith
John Smith

Answered May 31, 2017

Become steeper as the quantity of output increases
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