Marginal cost curves slope
A) downward because of decreasing opportunity cost.
B) upward because of increasing opportunity cost.
C) upward because of decreasing opportunity cost.
D) downward because of increasing opportunity cost.

Question

Quizplus · Accepted Answer

Marginal cost curves slope upward because of increasing opportunity cost. As more units of a good or service are produced, the resources used to produce them become more and more specialized, meaning that the cost of producing additional units increases. This is because the resources that are best suited for producing the initial units are used up, and less efficient resources must be used to produce additional units, leading to an increase in the cost of production.

Marginal Cost Curves Slope