pts At higher levels of output, marginal costs increase due to: division of labor and specialization law of diminishing marginal returns ???? income elasticity of demand cross-price elasticity of demand Question 10 3 pts True/False

9. law of diminishing marginal returns. This is the CORRECT answer

Marginal cost measures the incremental total cost with respect to a change in the output. Change in fixed costs does not affect the marginal cost. If there is only fixed costs associated with producing goods, the marginal cost of production is zero. Variable costs affect the Marginal cost. As the output increases, variable costs tend to increase. This is due to diminishing marginal returns.

10. False. This is the CORRECT choice

Financial capital is the forms of funding to build wealth. Individuals use financial capital to invest and Businesses use capital to generate additional revenue stream. Companies use financial capital to augment infrastructure. The entrepreneurs need financial capital to purchase capital goods like equipment, plants, machines, tools etc to commence production of goods and services.