Marginal Cost Eventually Increases Because

question 361

Multiple Choice

Marginal cost eventually increases because

• A) of the law of diminishing returns.
• B) eventually each additional worker produces a successively smaller addition to output.
• C) the marginal product of the variable input eventually falls.
• D) All of the above answers are correct.

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Definitions:

Optimal

The most favorable condition or level for growth, effectiveness, or well-being.

Large-Scale Events

Events characterized by their large geographic scope, significant number of participants, or substantial impacts on societies and economies.

Catastrophes

Large-scale disasters or tragic events that cause significant harm or damage, often with widespread and long-lasting effects.

James-Lange

Theory of emotion that suggests physiological arousal precedes the emotional experience, meaning the body's reaction to a stimulus comes first and is then interpreted as an emotion.