The principle of increasing marginal cost implies that the
A) additional cost of producing one more of a good or service decreases as more is produced.
B) total cost of producing more of a good or service remains the same as more is produced.
C) additional cost of producing one more of a good or service increases as more is produced.
D) total cost from producing more of a good or service decreases as more is produced.

Question

Quizplus · Accepted Answer

The principle of increasing marginal cost states that as more units of a good or service are produced, the additional cost of producing one more unit will generally increase. This is because factors like the availability and cost of resources, labor, and capital become increasingly scarce as production increases, leading to higher costs for each additional unit produced. Therefore, the correct choice is C.

The Principle of Increasing Marginal Cost Implies That the