Which of the Following Best Explains Why Marginal Cost Eventually

question 11

Multiple Choice

Which of the following best explains why marginal cost eventually increases as output increases?

• A)economies of scale occur
• B)average cost increases
• C)total cost increases
• D)marginal product decreases
• E)fixed cost is constant

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Definitions:

Homemade Dividend

A strategy whereby investors sell a portion of their portfolio to create cash flow, mimicking the effect of dividend payments.

Dividend Per Share

The amount of dividend that a company pays out for each share of its stock over a specified period.

Required Return

The minimum profit or yield that an investor expects or requires from an investment in order to make it worthy of undertaking.

Shareholders Of Record

Registered individuals or entities that own shares in a corporation as documented by the company, used to determine who is eligible to receive dividends or exercise voting rights.