-Refer to the figure above. An increase in the marginal cost that causes an upward shift of the curve will cause the profit- maximizing number of units undertaken to _ _________.

Question

Quizplus · Accepted Answer

An increase in the marginal cost curve leads to a higher cost of producing each additional unit, which typically results in a decrease in the profit-maximizing quantity of units produced, as firms will find it less profitable to produce at previously optimal levels.

-Refer to the Figure Above