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.The changing slope of the total cost curve reflects:
A)decreasing average cost
B)increasing marginal product
C)decreasing marginal product
D)increasing fixed cost

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.The changing slope of the total cost curve reflects:
A)decreasing average cost 
B)increasing marginal product 
C)decreasing marginal product 
D)increasing fixed cost

Quizplus · Accepted Answer

The changing slope of the total cost curve reflects decreasing marginal product. As the quantity of cookies produced increases, the marginal product of labor decreases, causing the total cost curve to become steeper. This is due to diminishing returns to labor.<option>

Graph 13-2 This Graph Depicts a Total Cost Function