Figure 13-2
-Refer to Figure 13-2. The graph illustrates a typical production function. Based on its shape, what does the corresponding total cost curve look like?
A)an upward-sloping curve that increases at an increasing rate
B)an upward-sloping curve that increases at a decreasing rate
C)a downward-sloping curve
D)a horizontal straight line

Question

Figure 13-2 
-Refer to Figure 13-2. The graph illustrates a typical production function. Based on its shape, what does the corresponding total cost curve look like?
A)an upward-sloping curve that increases at an increasing rate 
B)an upward-sloping curve that increases at a decreasing rate 
C)a downward-sloping curve 
D)a horizontal straight line

Quizplus · Accepted Answer

The production function typically shows diminishing marginal returns, leading to a total cost curve that increases at an increasing rate as output increases.

Figure 13-2 -Refer to Figure 13-2. the Graph Illustrates a Typical Production