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 best captures information about the underlying production function?
A)output increases at a decreasing rate with additional units of input
B)output increases at an increasing rate with additional units of input
C)output decreases at a decreasing rate with additional units of input
D)output decreases at an increasing rate 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 best captures information about the underlying production function?
A)output increases at a decreasing rate with additional units of input 
B)output increases at an increasing rate with additional units of input 
C)output decreases at a decreasing rate with additional units of input 
D)output decreases at an increasing rate with additional units of input

Quizplus · Accepted Answer

The graph depicts a total cost function that is shaped like a quadratic curve, which implies that the underlying production function exhibits diminishing marginal returns. As more units of input are added, the total output increases at a decreasing rate.

Graph 13-2 This Graph Depicts a Total Cost Function