The marginal cost curve is
A) downward sloping to reflect the bowed out PPF.
B) downward sloping as marginal benefits increase.
C) upward sloping because marginal cost falls as more of a good or service is produced.
D) upward sloping to reflect the increasing opportunity cost of producing one more unit.
E) U-shaped to reflect the bowed out PPF.

Question

Quizplus · Accepted Answer

The marginal cost curve is upward sloping because producing each additional unit of a good or service requires using resources that are less efficient or more costly than those used for the previous units. As the production increases, the opportunity cost of using those resources also increases.

The Marginal Cost Curve Is