Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

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

Question:

Of diseconomies of scale.

Of minimum efficient scale.

Of the law of diminishing returns.

Normal profit exceeds economic profit.

Answer» c. Of the law of diminishing returns.

Note:

The above multiple-choice question is for all general and Competitive Exams in India.