Marginal cost
A)is constantly increasing,but as output increases it increases by smaller and smaller amounts.
B)decreases at low outputs until it reaches its minimum value,then remains constant.
C)decreases at low outputs and increases at high outputs.
D)increases at low outputs until it reaches its maximum value,then remains constant.
E)is constantly decreasing,but as output increases it decreases by smaller and smaller amounts.

Question

Quizplus · Accepted Answer

Marginal cost typically decreases at low levels of output as economies of scale are realized, but then increases at higher levels of output due to the law of diminishing returns.

Marginal Cost