Question

How does total product behave with change in marginal product?

Answer 1

Fixed costs are those that do notchange as the level of output changes. ... As production increases, totalvariable costs increase at a decreasing rate, since the marginal product for each additional worker is increasing. With diminishing marginal product, thetotal variable cost increases at an increasing rate.

Answer 2

Fixed costs are those that do notchange as the level of output changes. ... As production increases, totalvariable costs increase at a decreasing rate, since the marginal product for each additional worker is increasing. With diminishing marginal product, thetotal variable cost increases at an increasing rate.