The marginal cost curves slope upward because of the principle of
A) decreasing marginal benefits.
B) increasing marginal cost.
C) increasing marginal benefits.
D) decreasing marginal cost.
E) decreasing total benefit.

Question

Quizplus · Accepted Answer

The principle of increasing marginal cost states that as a firm produces more units of a good or service, the cost of producing each additional unit increases. This is due to factors such as the need for more resources or the decreasing efficiency of production as the firm reaches production capacity. Therefore, the marginal cost curve slopes upward as it reflects the increasing cost to produce each additional unit.

The Marginal Cost Curves Slope Upward Because of the Principle