Because Marginal Cost Increases as Output Increases

question 80

Multiple Choice

Because marginal cost increases as output increases,

• A)marginal product increases at an increasing rate.
• B)the total cost curve gets steeper as output increases.
• C)the fixed cost curve gets steeper as output increases.
• D)the total product curve gets steeper as output increases.
• E)the total cost curve becomes horizontal.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service, intended to protect consumers.

Price Floor

A minimum price set by the government for certain goods and services, intended to ensure fair conditions for producers.

Shortage

A situation where demand exceeds supply, often leading to rising prices and unmet consumer needs.

Surplus

An excess of income or assets over expenditure or liabilities in a given period, often referring to profit or the amount of goods produced over what is needed.