The reason the marginal cost curve eventually increases as output increases for the typical firm is because of
A)diseconomies of scale.
B)diminishing marginal utility.
C)diminishing marginal returns.
D)increasing opportunity cost.

Question

Quizplus · Accepted Answer

The marginal cost curve eventually increases as output increases due to diminishing marginal returns, which occurs when adding an additional factor of production results in a smaller increase in output.

The Reason the Marginal Cost Curve Eventually Increases as Output