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

question 93

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, the higher the price of that factor.
• 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:

Mantle

The most voluminous layer of Earth; located below the crust and above the core.

Thickest Crust

Refers to the part of the Earth's crust that has the greatest thickness, typically found in continents, especially under mountain ranges.

Topographic Profile

A cross-sectional view across a part of Earth’s surface, showing variations in elevation or depth.

Colorado Rockies

A major mountain range in western North America, extending from New Mexico to British Columbia.