MC increases because
A. MC naturally increases as firm nears capacity.
B. labor is paid overtime wages when volume increases.
C. in the short run, MC always increases.
D. the law of diminishing returns takes effect.
Answer:D
MC increases because
A. MC naturally increases as firm nears capacity. B. labor is paid overtime wages when volume increases. C. in the short run, MC always increases. D. the law of diminishing returns takes effect.