Answered

Which of the following is true regarding marginal costs?

A. The marginal benefit of berries falls as the quantity consumed increases.
B. The marginal cost of berries rises as the quantity picked increases.
C. The marginal benefit of berries rises as the quantity consumed increases.
D. The marginal cost of berries falls as the quantity picked increases.



Answer :

GinnyAnswer

Final answer:

Marginal costs represent cost changes as production increases, with profit maximization at the point where marginal revenue equals marginal cost.


Explanation:

Marginal costs refer to the change in total cost as the quantity produced increases. In the context of a raspberry farm example, marginal costs initially decline, representing increasing marginal returns, but eventually start to rise due to diminishing marginal returns. The firm's profit-maximizing output occurs where marginal revenue equals marginal cost, highlighting the balance between revenue and cost.


Learn more about Marginal costs here:

https://brainly.com/question/35832714


Other Questions