Marginal cost increases with output because
A)capital becomes increasingly difficult to work with as more units of labor utilize it.
B)marginal product increases with output.
C)increasing amounts of input must be used to produce one more unit of output.
D)total costs increase with output.
E)more input must be used to produce more output.

Question

Quizplus · Accepted Answer

As output increases, it becomes necessary to use increasing amounts of input to produce one more unit of output. This leads to an increase in the marginal cost of production.

Marginal Cost Increases with Output Because