Question

The marginal cost of production shows the change in a​ firm's total cost from producing one more unit of a good or service. what is the shape of the marginal cost​ curve? ​graphically, the marginal cost curve is

a. shaped like a​ hill, initially rising when the marginal product of labor is falling and then eventually falling when the marginal product of labor is rising.
b. a u​ shape, initially falling due to diminishing returns and then eventually rising due to specializationspecialization.
c. a u​ shape, initially falling when the marginal product of labor is rising and then eventually rising when the marginal product of labor is falling.
d. a u​ shape, initially falling when the marginal product of labor is below marginal cost and then eventually rising when the marginal product of labor is above marginal cost.
e. shaped like a​ hill, rising when the average cost of production is rising and then eventually falling when the average cost of production is falling.

Answer 1

The shape of the marginal cost curve is generally upward-sloping, initially falling due to increasing marginal returns and then eventually rising due to diminishing marginal returns.

Step-by-step explanation:

The shape of the marginal cost curve is generally upward-sloping, similar to a hill shape. Initially, the marginal cost curve falls due to increasing marginal returns, which means that the additional units produced are more efficient and less costly. However, as the production continues, diminishing marginal returns set in, and the marginal cost eventually starts rising.

Answer 2

Answer C.

Graphically, the marginal cost curve is a u shape. It is U-shaped because, at the start, there is increasing marginal returns which cause falling marginal cost and a downward-sloping marginal cost curve. Later, diminishing marginal returns cause rising marginal cost and an upward-sloping marginal cost curve.