The Fundamental Reason That Marginal Cost Eventually Rises as Output

question 157

Multiple Choice

The fundamental reason that marginal cost eventually rises as output increases is because of

• A)economies of scale.
• B)diseconomies of scale.
• C)diminishing marginal product.
• D)rising average fixed cost.

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Definitions:

Locked-Rotor Starting

A method of starting electric motors where the rotor is prevented from turning initially, causing high starting torque and current.

Induction Motor

An electric motor that operates by inducing an electromagnetic field in the rotor, rather than through direct electrical connection.

Synchronous Speed

The speed at which the magnetic field in an AC motor rotates, directly related to the frequency of the current supply and the number of poles in the motor.

Magnetic Field

An area surrounding a magnetic substance or an electric charge in motion, where magnetic force is exerted.