The fundamental reason that marginal cost eventually rises as output increases is because of
A)economies of scale.
B)diseconomies of scale.
C)diminishing marginal product.
D)rising average fixed cost.

Question

Quizplus · Accepted Answer

As output increases, the marginal product of an additional input eventually decreases, leading to higher marginal costs. This is due to the law of diminishing marginal returns.

The Fundamental Reason That Marginal Cost Eventually Rises as Output