Question

For a typical firm, as production continues to expand marginal cost will increase due to?

Answer 1

For a typical business firm, as production continues to expand marginal cost will increase due to the use of less productive resources.

What is law of diminishing marginal productivity?

The law of diminishing marginal productivity states that as the unit of a good produced by using more variable input units alongside a certain amount of fixed inputs increases, the total output may grow at a faster rate initially, then at a steady rate, and then starts decreasing or diminishing as the units of good produced increases.

What is marginal cost?

Marginal cost can be defined as the additional amount of money that is paid by a business firm from the production of an additional unit of a good or service.

In conclusion, as production continues to expand for a typical business firm, marginal cost will increase due to the use of less productive resources in accordance with the law of diminishing marginal productivity.

Read more on law of diminishing marginal productivity here: brainly.com/question/28149506

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