A firm will ________ at the output where marginal cost increases
A) begin to experience diminishing returns
B) begin to experience increasing returns
C) become profitable
D) start to experience losses

Question

Quizplus · Accepted Answer

Marginal cost increases when a firm begins to experience diminishing returns, meaning that each additional unit of input contributes less to output than the previous units.

A Firm Will ________ at the Output Where Marginal Cost