When a firm is experiencing diminishing marginal returns,its marginal cost _____
A)rises.
B)falls.
C)remains constant.
D)first rises and then falls.
E)becomes zero.

Question

Quizplus · Accepted Answer

When a firm experiences diminishing marginal returns, it means that each additional unit of input leads to proportionally smaller increases in output. As a result, the cost of producing each additional unit of output increases, causing the marginal cost to rise.

When a Firm Is Experiencing Diminishing Marginal Returns,its Marginal Cost