Marginal cost refers to the cost of producing one additional unit of a good or service. As more units are produced, it may require additional resources that come at a higher cost, such as increased labor or materials. Therefore, the marginal cost usually increases as more is produced.

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Marginal Cost

Question 142

Multiple Choice

Marginal cost

A) decreases as more is produced.
B) decreases as marginal benefits decrease.
C) remains constant as more is produced.
D) increases as more is produced.

Correct Answer: