Marginal cost eventually increases because
A) of the law of diminishing returns.
B) eventually each additional worker produces a successively smaller addition to output.
C) the marginal product of the variable input eventually falls.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

The law of diminishing returns states that adding more of a variable input to a fixed input will eventually result in smaller increases in output, leading to an increase in marginal cost. All the given options are explanations of this concept.

Marginal Cost Eventually Increases Because