The reason the marginal cost curve eventually increases as output increases for the typical firm is because:

Related MCQs

• If you know that with 8 units of output, average fixed cost is Rs. 12.50 and average variable cost is Rs. 81.25, then total cost at this output level is:
• The total product curve may initially show output increasing at an increasing rate as more labour is hired because of the:
• Which of the following statements best describes the general form of a production function: (i) It is a purely technological relationship between quantities of input and quantities of output. (ii) It represents the technology of an organisation, sector of an economy. (iii) Prices of inputs or of the output do not enter into the production function. (iv) It is a flow concept describing the transformation of inputs into output per unitof time.
• Which cost is to be incurred by a firm even if output is zero:
• The marginal product of labor curve shows the change in total product resulting from:
• Which would be an implicit cost for a firm? The cost:
• The law of diminishing marginal returns is encountered as increasing amounts of labour are hired because:
• Suppose that a firm produces 200,000 units a year and sells them all for Rs.10 each. The explicit costs of production are Rs.1,500,000 and the implicit costs of production are Rs. 300,000. The firm has an accounting profit of:
• If all resources used in the production of a product are increased by 20 percent and output increases by 20 percent, then there must be:
• With fixed costs of Rs. 400, a firm has average total costs of Rs. 3 and average variable costs of Rs. 2.50. Its output is: