Asked by Shayan Patel on Jun 16, 2024
Verified
Refer to Table 13-15. What is the shape of the marginal-cost curve?
Marginal-Cost Curve
A curve that shows the cost of producing one additional unit of a good or service.
- Explore and explicate the structural characteristics of cost curves, involving total cost, average total cost, average fixed cost, average variable cost, and marginal cost.
Verified Answer
AP
Anthony PiazzaJun 17, 2024
Final Answer :
MC = change in TC/change in Q, so although the numerator is $5 for each level of output, the denominator is the marginal productivity, which first increases then decreases. Thus, marginal cost first decreases, then increases; marginal cost is U-shaped.
Learning Objectives
- Explore and explicate the structural characteristics of cost curves, involving total cost, average total cost, average fixed cost, average variable cost, and marginal cost.