-In the figure above, the marginal cost of producing a computer
A) increases as more computers are produced.
B) stays the same as more computers are produced.
C) decreases as more computers are produced.
D) is the same as the marginal cost of producing a television set.

Question

-In the figure above, the marginal cost of producing a computer
A) increases as more computers are produced. 
B) stays the same as more computers are produced. 
C) decreases as more computers are produced. 
D) is the same as the marginal cost of producing a television set.

Quizplus · Accepted Answer

Marginal cost increases as more units are produced due to the law of diminishing returns, which states that as production increases, the cost of producing an additional unit also increases.

-In the Figure Above, the Marginal Cost of Producing a Computer