A ________ curve shows the marginal cost of producing one more unit of a good or service.
A)demand
B)supply
C)production possibilities
D)marginal benefit

Question

Quizplus · Accepted Answer

The concept of marginal cost is typically associated with supply curves. The marginal cost curve shows the additional cost that a firm incurs to produce one more unit of a good or service. As the firm increases production, marginal costs tend to rise due to diminishing returns or diseconomies of scale. Therefore, the supply curve is generally upward-sloping, reflecting the positive relationship between price and quantity supplied. The other options listed are not directly related to the concept of marginal cost.

A ________ Curve Shows the Marginal Cost of Producing One