The importance of the marginal cost curve of a company is that it is also the
A)supply curve for its product.
B)demand curve for its product.
C)average cost curve for its product.
D)marginal revenue curve for its product.

Question

Quizplus · Accepted Answer

The marginal cost curve shows the additional cost of producing one more unit of a product, and it is also the supply curve for the product because it shows the minimum price at which the company is willing to sell one more unit of the product. Therefore, the correct answer is A. The marginal cost curve is not the demand curve, the average cost curve, or the marginal revenue curve for the product.

The Importance of the Marginal Cost Curve of a Company