After some point,each additional unit of output requires more units of a variable input than the previous unit,causing
A) marginal cost to rise.
B) fixed cost to rise.
C) total cost to rise at a decreasing rate.
D) total variable cost to rise at a decreasing rate.
E) output to rise at an increasing rate.

Question

Quizplus · Accepted Answer

This phenomenon is known as the law of diminishing marginal returns, and it causes marginal cost to increase as more units of the variable input are used to produce each additional unit of output.

After Some Point,each Additional Unit of Output Requires More Units