As a firm expands output, in the short run marginal costs will
a. always decline as output expands.
b. increase at first but eventually level off and decline.
c. eventually increase as the firm experiences diminishing returns to the fixed factors of production.
d. initially increase at a decreasing rate but eventually increase at an increasing rate.
C
Economics
You might also like to view...
Cheating in a cartel is more likely to occur if the industry
A) has a large number of firms. B) has homogeneous products. C) has easily observable prices. D) has little variation in prices.
Economics
Long-run economies of scale exist over the range of output for which the long-run average cost curve:
a. is constant. b. is falling. c. is rising. d. does not exist.
Economics