Plot the output against the AFC (average fixed cost). Put the output on the honz

Question

Plot the output against the AFC (average fixed cost). Put the output on the honz and the AFC on the vertical axis. What is the general shape of this function? It is a hill-shaped function (goes up, peaks, then falls) It is a valley-shaped function (goes down, bottoms out, then rises) It is a horizontal line It is an upward sloping function t is a downward sloping function O O ? uestion 11 2 pts Think about the general relationship between the marginal product of labor (MPL) and the marginal cost of output (MC). As MPL increases, what happens to MC? MC increases s:/lpsu instructure.com/courses/1891366/quizzes/3418943/take

Explanation / Answer

There is an inverse relationship between the marginal product of labor and the marginal cost of output. As the marginal product of labor increases, the marginal cost of output reduces. Hence the correct answer is (B) i.e MC decreases.

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