Asked by Jessica Ventura on May 08, 2024
Verified
The shape of the marginal cost curve is the mirror image of the shape of the _____ curve.
A) total product
B) average product
C) marginal product
D) average total cost
Marginal Cost Curve
A graphical representation showing how the cost of producing one additional unit of a good changes as the production volume varies.
Total Product
The overall quantity of output that a firm produces, typically measured within a specific time period under given levels of input.
- Comprehend the notion of marginal product and its variation in response to incremental labor inputs.
- Determine the circumstances that lead to the onset of diminishing marginal returns.
Verified Answer
SJ
Suzanne JacksonMay 10, 2024
Final Answer :
C
Explanation :
The marginal cost curve intersects the average total cost curve and the average variable cost curve at their lowest points. As the marginal cost of producing additional units increases, it reflects the diminishing marginal returns of production, which is captured by the shape of the marginal product curve. Therefore, the shape of the marginal cost curve is the mirror image of the shape of the marginal product curve.
Learning Objectives
- Comprehend the notion of marginal product and its variation in response to incremental labor inputs.
- Determine the circumstances that lead to the onset of diminishing marginal returns.