Marginal cost eventually increases as output increases due to the effect of _____
A)economies of scale.
B)increasing average cost.
C)increasing total cost.
D)diminishing marginal product of inputs.
E)constant fixed cost.

Question

Quizplus · Accepted Answer

When output increases, the marginal product of inputs eventually diminishes, making it necessary to use more inputs to produce each additional unit. This results in an increase in marginal cost.

Marginal Cost Eventually Increases as Output Increases Due to the Effect