The graph of a company's total cost function is shown. Does this total cost function represent a manufacturing process that is getting more efficient or less efficient as the production level increases?
A) less efficient
B) more efficient

Question

The graph of a company's total cost function is shown. Does this total cost function represent a manufacturing process that is getting more efficient or less efficient as the production level increases? ​  ​
A) less efficient 
B) more efficient

Quizplus · Accepted Answer

As the production level increases, the total cost also increases at a faster rate. This indicates that the marginal cost of production is increasing, which means that the manufacturing process is becoming less efficient.

The Graph of a Company's Total Cost Function Is Shown