Asked by Shehroze Tariq on Jul 13, 2024
Verified
Refer to Table 13-14. What is the shape of the marginal-cost curve?
Marginal-Cost Curve
A graphical representation showing how the cost of producing one additional unit of a good varies as production volume changes.
- Conduct an analysis and provide a description of the cost curve shapes, incorporating total cost, average total cost, average fixed cost, average variable cost, and marginal cost.
Verified Answer
HN
Haritsiyah Nizha NiratikaJul 13, 2024
Final Answer :
MC = change in TC / change in Q, so although the numerator is 20 for each level of output, the denominator is the marginal productivity, which is always decreasing for the range of output specified in the table. Thus, marginal cost is increasing or upward sloping.
Learning Objectives
- Conduct an analysis and provide a description of the cost curve shapes, incorporating total cost, average total cost, average fixed cost, average variable cost, and marginal cost.