1. If marginal product is decreasing, then average product must also be decreasing. 2. For a fixed-proportion technology, inputs cannot be substituted for each other in production. 3. The marginal ...

The total cost of a business is composed of fixed costs and variable costs. Fixed costs and variable costs affect the marginal cost ... cost is a cost that remains constant; it does not change ...

Though it can remain constant up to a certain ... marginal revenue will be less than marginal cost, making it unprofitable to produce additional units. The graph below shows marginal revenue ...