Figure 13-3
-Refer to Figure 13-3. The graph illustrates a typical total cost curve. Based on its shape, what does the corresponding production function 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 13-3 
-Refer to Figure 13-3. The graph illustrates a typical total cost curve. Based on its shape, what does the corresponding production function 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 typical total cost curve is upward-sloping and becomes steeper as output increases, indicating diminishing marginal returns. This corresponds to a production function that increases at a decreasing rate.

Figure 13-3 -Refer to Figure 13-3. the Graph Illustrates a Typical Total