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WAEC Economics 2012 Objective — Question 18

Question 18 of 49 from the West African Examinations Council (WAEC) Economics 2012 Objective paper, with the correct answer and a full explanation.

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In the firm's production process, marginal cost

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

Explanation

Marginal cost of production falls and later rises following the law of diminishing return in the short run or return to scale in the long run.

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