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

The total cost curve is upward sloping which indicates that as production level increases, the total cost also increases. This implies that the marginal cost is increasing as production increases, which means that the manufacturing process is becoming less efficient.

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