As companies increase supply,the cost of producing an additional unit initially declines but eventually increases.

Name: As companies increase supply,the cost of producing an additional unit initially declines but eventually increases.
Brand: Quizplus
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Quizplus · Accepted Answer

This phenomenon is known as the law of diminishing returns, where after a certain point, the marginal cost of producing an additional unit starts increasing due to factors like scarcity of resources, constraints in production processes, etc.

As Companies Increase Supply,the Cost of Producing an Additional Unit