Graph 13-2 This graph depicts a total cost function for a firm that produces cookies.Use the graph to answer the following question(s).
-Refer to Graph 13-2.Which of the statements below is most consistent with the shape of the total cost curve?
A)producing additional cookies is equally costly, regardless of how many cookies are already being produced
B)producing additional cookies becomes increasingly costly only when the number of cookies already being produced is large
C)producing an additional cookie is always more costly than producing the previous cookie
D)total production of cookies decreases with additional units of input

Question

Graph 13-2  This graph depicts a total cost function for a firm that produces cookies.Use the graph to answer the following question(s).
-Refer to Graph 13-2.Which of the statements below is most consistent with the shape of the total cost curve?
A)producing additional cookies is equally costly, regardless of how many cookies are already being produced 
B)producing additional cookies becomes increasingly costly only when the number of cookies already being produced is large 
C)producing an additional cookie is always more costly than producing the previous cookie 
D)total production of cookies decreases with additional units of input

Quizplus · Accepted Answer

The shape of the total cost curve typically reflects increasing marginal costs, meaning that producing each additional unit (in this case, a cookie) costs more than producing the previous one. This is consistent with the concept of diminishing marginal returns, where the cost of production increases as output increases.

Graph 13-2 This Graph Depicts a Total Cost Function