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.

---

Definitions:

Confounded

A situation in research where the effect of one variable cannot be separated from the effect of another variable.

Double-blind Procedure

A research method in which neither the participants nor the experimenters know who is receiving a particular treatment, reducing bias.

Performance Evaluation

The formal assessment and appraisal of an employee's work performance over a specific period, typically to determine job effectiveness, identify strengths, and pinpoint areas for improvement.

Control Group

In experimental research, it refers to the group of participants that does not receive the experimental treatment, used as a baseline to compare the effects of the treatment.