One reason why newspaper-publishers' cost per paper increases as their circulation numbers fall is due to diminishing marginal returns.

Question

Quizplus · Accepted Answer

The primary reason for the increase in cost per paper as circulation numbers fall is due to the high fixed costs associated with newspaper publishing (such as printing presses and distribution networks) which are spread over fewer copies, not diminishing marginal returns which refers to the decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, keeping all other factors constant.

One Reason Why Newspaper-Publishers' Cost Per Paper Increases as Their