Because of the law of diminishing returns, marginal cost?

Question

Possible Answers:
-initially increases and then decreases as output increases.
-initially decreases and then does not change as output increases.
-decreases constantly as output increases.
-increases constantly as output increases.

Answer 1

Increases constantly with output.

The law of diminishing returns need not apply initially for small quantities, but as output rises, it will eventually.

Answer 2

The law of diminishing marginal returns simply states that the first few increases of an input, x, leads to larger amounts of output, y. However, as you increase x your y amount will be smaller and smaller with every increase. ie) x = 1, y = 5 ; change = 0 x = 2, y = 10 ; change = 5 x = 3, y = 12 ; change = 2 x = 4, y = 13 ; change = 1 as you can see the change per increase in x is decreasing, or diminishing. In macroeconmics, you can refer to the sollow growth model where the savings curve is a concave curve with the DMR property. If you know your calculus it is simply as x approaches infinite the slope is 0.