If there is no external cost, then marginal social cost
A) increases as output increases.
B) is unrelated to output levels.
C) is constant regardless of the level of output.
D) first increases and then decreases as output increases.
E) decreases as output increases.

Question

Quizplus · Accepted Answer

Marginal social cost typically increases as output increases due to the increasing costs of production resources and the diminishing returns on those resources as production scales up.

If There Is No External Cost, Then Marginal Social Cost