pminishing marginal MJact variabe cosf selet onc Solutionmar

p:minishing marginal M.Jact variabe cosf selet onc

Solution

marginal product is the additional product that is produced by employing an additional unit of input,

now if aditional input is in place but the additional input is not able to produce more of additional output but the cost of input is same,

variable cost is the cost of employing variable inputs like labour,

so here we can see that simply, if adding an additional input doesnt increase output much , but we are paying the labour same wages , so average variable cost which is the variable octs divided by output will surely rise.so answer is true