Figure 13-4
The curves in this figure reflect information about the average total cost, average fixed cost, average variable cost, and marginal cost for a firm.

-Refer to Figure 13-4.Which of the curves is most likely to represent marginal cost
A)A
B)B
C)C

Question

Figure 13-4
The curves in this figure reflect information about the average total cost, average fixed cost, average variable cost, and marginal cost for a firm.
 
-Refer to Figure 13-4.Which of the curves is most likely to represent marginal cost
A)A 
B)B 
C)C

Quizplus · Accepted Answer

Marginal cost is the change in total cost that results from producing one additional unit of output. In Figure 13-4, curve A shows that the marginal cost of producing the first unit of output is $10, the marginal cost of producing the second unit of output is $15, and so on. This is the most likely curve to represent marginal cost because it shows that the marginal cost of production increases as the quantity of output increases.

Figure 13-4 The Curves in This Figure Reflect Information About the Average