A marginal cost curve
A) shows that as more of a good is produced, opportunity costs of producing another unit increase.
B) is upward sloping.
C) is bowed inward so that its slope can become negative.
D) Both answers A and B are correct.

Question

Quizplus · Accepted Answer

A marginal cost curve shows the additional cost of producing one more unit of a good. As more of a good is produced, the opportunity cost of producing another unit increases, resulting in an upward-sloping marginal cost curve. Therefore, options A and B are correct. Option C is incorrect as the slope of the marginal cost curve can never become negative.

A Marginal Cost Curve