Marginal cost ________ as the quantity produced is increased.
A) first increases and then decreases
B) first decreases and then increases
C) always increases
D) always decreases

Name: Marginal cost ________ as the quantity produced is increased. A) first increases and then decreases B) first decreases and then increases C) always increases D) always decreases
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Question

Quizplus · Accepted Answer

Marginal cost typically first decreases due to economies of scale and then increases due to diseconomies of scale as production increases.

Marginal Cost ________ as the Quantity Produced Is Increased