The marginal cost of an activity ________ as you do more of it.
A)decreases
B)changes only if the marginal benefit of the activity does not change
C)changes only if the marginal benefit of the activity changes
D)doesn't change
E)increases

Question

Quizplus · Accepted Answer

Marginal cost refers to the additional cost incurred to produce one additional unit of output. As we increase the production or activity, the additional cost incurred may increase due to factors such as limited availability of resources or diminishing returns. Therefore, the marginal cost of an activity increases as we do more of it.

The Marginal Cost of an Activity ________ as You Do