The marginal cost often increases as production increases up to a point because of efficiencies created by larger amounts.

Name: The marginal cost often increases as production increases up to a point because of efficiencies created by larger amounts.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

The marginal cost often increases as production increases due to the law of diminishing returns, where additional units of production require increasingly larger amounts of variable inputs, leading to higher costs per additional unit produced.

The Marginal Cost Often Increases as Production Increases Up to a Point