In the firm's production process, marginal cost

Economics

WAEC 2012

A. falls continuously throughout
B. falls and later rises
C. remains unchanged throughout
D. rises and later falls

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Correct Answer: Option D

Explanation

Marginal cost is the cost additional cost incurred by producing one additional unit of a product or service. In the production process, the cost would usually rise and the fall in the long run when the firm starts enjoying economies of scale. That is, higher outputs, minimal cost

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