When a Firm Is Experiencing Diminishing Marginal Returns,its Marginal Cost

question 70

Multiple Choice

When a firm is experiencing diminishing marginal returns,its marginal cost _____

• A)rises.
• B)falls.
• C)remains constant.
• D)first rises and then falls.
• E)becomes zero.

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Definitions:

Energy Source

A system or material that provides power for activity and functioning, such as fossil fuels, solar power, or food for biological organisms.

Biological Molecule

Compounds that are vital for the existence and function of living organisms, including proteins, carbohydrates, lipids, and nucleic acids.

Condensation

Chemical reaction in which a large molecule is assembled from smaller sub-units; water also forms.

Polymers

Large molecules composed of many repeated subunits, which can be found in various natural and synthetic materials like plastics, proteins, and DNA.