The behaviors of short-run marginal cost, average variable cost, and average total cost are caused primarily by the:

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The Law of Diminishing Returns explains how, after a certain point, adding more of one factor of production (like labor) to a fixed amount of another factor (like capital) will result in smaller increases in output, which affects the shapes and behaviors of short-run marginal cost, average variable cost, and average total cost curves.

The Behaviors of Short-Run Marginal Cost, Average Variable Cost, and Average