A firm's AC will eventually begin to rise because
A)managers' salaries rise with output.
B)bottlenecks may be reached for some inputs.
C)MFC begins to rise near capacity.
D)the range of negative returns is reached.

Question

Quizplus · Accepted Answer

As output increases, firms may encounter bottlenecks in production, leading to inefficiencies and increased average costs.

A Firm's AC Will Eventually Begin to Rise Because