Which cost curves are influenced by the law of diminishing marginal product?

The law of diminishing marginal product refers to the phenomenon where adding an additional unit of a variable input, while holding other inputs constant, results in smaller increases in output after a certain point. This concept plays a critical role in influencing various cost curves in economics.

Total cost, average variable cost, and marginal cost are all directly impacted by this law. When the marginal product begins to decline due to the law of diminishing marginal product, the additional output from each unit of input becomes less significant. Consequently, the marginal cost starts to increase, reflecting the increased cost for producing an extra unit as efficiency decreases. This rising marginal cost also affects average variable cost, as average variable cost is derived from total variable costs, which are influenced by the diminishing returns of production.

As total cost becomes a function of both fixed and variable costs, any increase in variable input costs due to diminishing returns will also influence the total cost curve. Therefore, all of these cost curves—total cost, average variable cost, and marginal cost—are intricately linked to the concept of diminishing marginal product, making this choice the most accurate representation of the effects outlined in the question.