-Figure 7-8 shows three different cost curves,labeled A,B,and C.Which of these curves is most likely to represent marginal cost?
A)curve A
B)curve B
C)curve C
D)neither A,B,nor C
E)cannot be determined without more information

Question

-Figure 7-8 shows three different cost curves,labeled A,B,and C.Which of these curves is most likely to represent marginal cost?
A)curve A 
B)curve B 
C)curve C 
D)neither A,B,nor C 
E)cannot be determined without more information

Quizplus · Accepted Answer

Marginal cost curves typically have a U-shape due to initially decreasing costs with increased production, followed by increasing costs as production continues to rise. Curve B is most likely to represent this pattern.

-Figure 7-8 Shows Three Different Cost Curves,labeled A,B,and C