Multiple Choice
Why do average variable costs eventually rise if a company's output increases enough?
A) The diminishing marginal revenue triggers increased use of resources.
B) The reduction in average fixed costs must be offset by increasing variable costs.
C) Diminishing marginal product occurs, causing average variable costs to rise.
D) The price paid for each unit of input keeps rising.
Correct Answer:
Verified
Correct Answer:
Verified
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