At very high levels of output, total cost tends to:
A) increase at a constant rate.
B) increase at a decreasing rate.
C) increase at an increasing rate.
D) decrease at an increasing rate.

Question

Quizplus · Accepted Answer

At very high levels of output, total cost tends to increase at an increasing rate due to factors like diminishing returns, where additional units of input contribute less to output, leading to higher marginal costs.

At Very High Levels of Output, Total Cost Tends To