Question: Assume that labor is the only variable input. If a firm's short-run marginal cost is increasing as output rises, which of the following must
Assume that labor is the only variable input. If a firm's short-run marginal cost is increasing as output rises, which of the following must be true? (A) Average product of labor is constant. (B) Marginal product of labor is decreasing. (C) Average product of labor is increasing. (D) Total product of labor is decreasing.
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