If, as the quantity produced increases, a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will

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If the production function exhibits increasing marginal product at first, the marginal cost will decrease as more units are produced due to specialization and economies of scale. However, once diminishing marginal product sets in, the additional units produced will require more inputs (e.g. more labor, materials) and the marginal cost will start to increase. This leads to a U-shaped marginal-cost curve, with decreasing marginal cost at first and then increasing marginal cost as production increases.

If, as the Quantity Produced Increases, a Production Function First