The marginal cost curves slope upward because of the principle of
A) decreasing total benefit.
B) increasing marginal cost.
C) increasing marginal benefits.
D) decreasing marginal cost.
E) decreasing marginal benefits.

Question

Quizplus · Accepted Answer

The principle of increasing marginal cost states that as production of a good or service increases, the marginal cost of producing additional units also increases. This is because as production increases, resources become more scarce and additional units require more effort and resources to produce, leading to a higher cost per unit. Therefore, the marginal cost curve slopes upward.

The Marginal Cost Curves Slope Upward Because of the Principle