-The above figure shows the costs at Barney's Bagel Bakery. After 3000 bagels are produced each day, the ATC curve starts to slope upward because the
A) MC curve slopes upward.
B) MC exceeds the ATC.
C) AFC curve (not shown) starts to slope upward.
D) None of the above answers is correct.

Question

-The above figure shows the costs at Barney's Bagel Bakery. After 3000 bagels are produced each day, the ATC curve starts to slope upward because the
A) MC curve slopes upward. 
B) MC exceeds the ATC. 
C) AFC curve (not shown) starts to slope upward. 
D) None of the above answers is correct.

Quizplus · Accepted Answer

The ATC curve starts to slope upward when the marginal cost (MC) exceeds the average total cost (ATC), as additional units cost more than the average, pulling the average up.

-The Above Figure Shows the Costs at Barney's Bagel Bakery