as it is below the average total cost curve. The difference in total cost between two levels of output is divided by the difference in output to arrive at the marginal cost (MC). Total cost divided by ...

3. The marginal product of input 1 derived from the production function y=min[az 1, bz 2], diminishes for increases in input 1. 4. If the average product is declining, then average total cost must be ...

One input factor's net marginal benefit increases after product ... is spread out across the various products so the average total cost of production decreases. The costs of producing each ...