Marginal cost typically ________ and marginal revenue typically _________ with increasing output.

Question

Marginal cost typically ________ and marginal revenue typically _________ with increasing output.​

Quizplus · Accepted Answer

Marginal cost refers to the cost of producing an additional unit of output. As output increases, businesses typically need to invest in additional resources or labor, causing the marginal cost to rise. On the other hand, marginal revenue refers to the revenue generated from producing and selling an additional unit of output. As businesses produce more output, they can often benefit from economies of scale and charge a higher price for their goods, causing marginal revenue to fall. Therefore, the correct answer is A) rises; falls.

Marginal Cost Typically ________ and Marginal Revenue Typically _________ with Increasing

Marginal Cost Typically and Marginal Revenue Typically _ with Increasing