As a Firm Expands Output, in the Short Run Marginal

question 88

Multiple Choice

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.

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