Asked by Keandra Moffitt on Jul 12, 2024
Verified
Once diminishing returns have set in,as output increases,the total cost curve:
A) gets steeper.
B) gets flatter.
C) becomes horizontal.
D) increases at first,and then decreases.
Total Cost Curve
A graph that shows the total cost incurred by a firm in the production of goods or services at different levels of output.
Diminishing Returns
The principle stating that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after a certain point.
- Understand the concept of diminishing marginal returns and its impact on production processes.
- Detail the consequences of growing and decreasing marginal returns on marginal cost.
Verified Answer
TP
Tonya PoseyJul 16, 2024
Final Answer :
A
Explanation :
When diminishing returns set in, the marginal cost of production starts to increase, which means that the additional cost of producing one more unit of output is higher than before. This causes the total cost curve to get steeper as output increases.
Learning Objectives
- Understand the concept of diminishing marginal returns and its impact on production processes.
- Detail the consequences of growing and decreasing marginal returns on marginal cost.