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29 Nov 2019
In the short run when some inputs areâ fixed, marginal cost must eventually rise as aâ firm's output increases because
A. the prices the firm pays forâ labor, material and other variable inputs will increase. B. there will eventually be diminishing marginal products for theâ firm's variable inputs. C. there will eventually be decreasing returns to scale. D. All of the above.
In the short run when some inputs areâ fixed, marginal cost must eventually rise as aâ firm's output increases because
A. the prices the firm pays forâ labor, material and other variable inputs will increase. B. there will eventually be diminishing marginal products for theâ firm's variable inputs. C. there will eventually be decreasing returns to scale. D. All of the above.
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