Which of the Following Explains Most Accurately Why the Firm's

question 179

Multiple Choice

Which of the following explains most accurately why the firm's short-run marginal cost curve will eventually rise?

• A) As more of the variable factor is used, its price will rise.
• B) When diminishing marginal returns set in, it will take ever-larger quantities of the variable resources to produce an additional unit of output.
• C) As the variable factor is used more intensely, its marginal product will rise, causing an increase in marginal costs.
• D) As the size of the firm increases, the operational efficiency of the firm declines, causing an increase in marginal costs.

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Definitions:

Nodes

Points along a standing wave where the wave amplitude is zero, or points in an atom where the probability of finding an electron is zero.

π Molecular Orbitals

Orbitals formed by the overlap of p orbitals on adjacent atoms, significant in determining the bonding and properties of molecules.

Electron Density

Refers to the probability distribution of electrons in a chemical species; higher density regions indicate a greater likelihood of electron presence.

Internuclear Axis

The imaginary line that runs through the nuclei of two atoms bonded together, defining the direction of the bond.