The shape of the total cost curve is related to the shape of the production function.

Question

Quizplus · Accepted Answer

The shape of the total cost curve is directly related to the shape of the production function. This is because the total cost of production depends on the amount of inputs used in the production process, and the amount of inputs used is determined by the production function. A steep or flat production function will result in a corresponding steep or flat total cost curve.

The Shape of the Total Cost Curve Is Related to the Shape