A variable cost function of the form: implies a marginal cost curve that is:
A) constant.
B) upward sloping.
C) U-shaped.
D) quadratic.

Question

A variable cost function of the form:  implies a marginal cost curve that is:
A) constant. 
B) upward sloping. 
C) U-shaped. 
D) quadratic.

Quizplus · Accepted Answer

A variable cost function of this form implies that there are two variables (a and b) that affect the cost. This suggests that the cost is not constant and is likely to increase as more units are produced (i.e. upward sloping). It is not necessarily U-shaped or quadratic as there is not enough information to make this determination.

A Variable Cost Function of the Form: Implies a Marginal