Question

When the slope of the total product curve begins to flatten,

A. marginal product must be increasing.

B. additional inputs add more and more to total product than those added before.

C. total cost must be increasing at an increasing rate.

D. total cost must be increasing at a decreasing rate.

Answer 1

Answer

Option C

C. total cost must be increasing at an increasing rate.

The total product slope is the marginal product and the slope is flattening means the slope is lower which means the marginal product is decreasing

MC=input price /marginal product

so the marginal cost is increasing which is the change in the total cost and it is the rate of change in the TC.

SO the total cost must be increasing at an increasing rate as the total cost is a sum of MC and MC is increasing.