Question

what happens to total cost curve due to diminishing marginal product and explain the reasons for the curve??

Answer 1

Output MP L тC Cost Output

Total cost : It is the summation of fixed and variable cost

Marginal product: It is the amount additional of output produced per unit of input being used.

So, Total cost curve and marginal product initially increases with the increase in output but once the marginal product reaches the maximum and starts to decline, the total cost keeps increasing showing the increasing cost with the increase in input.