Which of the following best explains why marginal cost eventually increases as output increases?
A)economies of scale occur
B)average cost increases
C)total cost increases
D)marginal product decreases
E)fixed cost is constant

Question

Quizplus · Accepted Answer

Marginal cost eventually increases as output increases because of the law of diminishing marginal returns, where the marginal product of an additional unit of input eventually decreases. This means that more and more input is required to produce each additional unit of output, leading to higher marginal costs.

Which of the Following Best Explains Why Marginal Cost Eventually