-What causes marginal cost to increase?

Name: -What causes marginal cost to increase?
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Question

Quizplus · Accepted Answer

The law of diminishing returns explains why marginal cost increases. It states that as more units of a variable input (like labor) are added to fixed inputs (like machinery), the additional output from each new unit of input will eventually decrease, leading to higher costs for producing each additional unit.

-What Causes Marginal Cost to Increase