If marginal cost increases when output increases,then
A) marginal product must decrease when output increases.
B) average fixed cost is constant.
C) total cost is constant.
D) average variable cost must increase when output increases.
E) average total cost must decrease when output increases.

Question

Quizplus · Accepted Answer

When marginal cost increases with output, it indicates diminishing marginal returns, meaning the marginal product of an additional unit of input is decreasing.

If Marginal Cost Increases When Output Increases,then