A firm requires two inputs for production: labor; and capital. It is operating at the lowest average cost point. It then decides to increases the amount of capital employed. Assume the change is small enough so as not to impact the price of the product. This will likely result in:

Explanation: Increase in an input will result in higher production unless the marginal productivity of the unit is negative (not the usual case). Also as you increase the use of one input while keeping the other inputs fixed, normally you will have falling marginal productivity for the input being increased, and hence falling marginal revenue (price constant means marginal productivity is proportional to marginal revenue).