Marginal cost increases as the quantity of output increases.What property does this reflect
A)increasing total cost
B)diminishing total cost
C)increasing marginal product
D)diminishing marginal product

Question

Quizplus · Accepted Answer

As the quantity of output increases, the marginal cost increases because of the phenomenon of diminishing marginal product. This means that the additional cost of producing each additional unit of output is higher than the cost of producing the previous unit, reflecting the fact that additional input is yielding less additional output.

Marginal Cost Increases as the Quantity of Output Increases