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Author Question: Why does marginal cost eventually rise as output increases? What will be an ideal ... (Read 89 times)

newyorker26

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on: Jun 29, 2018
Why does marginal cost eventually rise as output increases?
 
  What will be an ideal response?

Question 2

What is meant by the term economic growth?
 
  What will be an ideal response?


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Anna

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Marginal cost eventually rises as output increases because of diminishing returns. If each additional unit of a variable input adds less and less to total output, it must require more of that variable input to produce each additional unit of output. This means that each additional unit of output must cost more to produce.

Answer to Question 2

Economic growth occurs when the total output in an economy increases.


newyorker26

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

scikid

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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