-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 marginal cost leads to a decrease in the profit-maximizing number of units produced because it becomes more expensive to produce each additional unit, thus reducing the quantity at which marginal cost equals marginal revenue.

-Refer to the Figure Above