An increase in the marginal cost of an activity necessarily means that people will no longer engage in any of that activity.

Question

Quizplus · Accepted Answer

An increase in the marginal cost of an activity does not necessarily mean people will cease engaging in it; it simply means that the additional cost of continuing the activity has increased, which may affect the quantity or extent to which they engage, but not necessarily stop them altogether.

An Increase in the Marginal Cost of an Activity Necessarily