One important characteristic of all marginal cost curves is that ________.

Question

Quizplus · Accepted Answer

Marginal cost curves may initially decline due to economies of scale, but eventually, they will increase due to diseconomies of scale. This is because as output increases, the cost of producing each additional unit may increase due to factors such as the need for more expensive specialized equipment, increased labor costs, and decreased efficiency. Therefore, the correct answer is B.

One Important Characteristic of All Marginal Cost Curves Is That