Graph 13-2 This graph depicts a total cost function for a firm that produces cookies.Use the graph to answer the following question(s).
-Refer to Graph 13-2.Identify the true statements from the list below.(i) the marginal cost of cookie production is increasing
(ii) cookie production exhibits diminishing marginal product
(iii) the slope of the production function increases as quantity of inputs increase
A)(i) only
B)(ii) and (iii)
C)(i) and (iii)
D)(i), (ii) and (iii)

Question

Graph 13-2  This graph depicts a total cost function for a firm that produces cookies.Use the graph to answer the following question(s).
-Refer to Graph 13-2.Identify the true statements from the list below.(i) the marginal cost of cookie production is increasing
(ii) cookie production exhibits diminishing marginal product
(iii) the slope of the production function increases as quantity of inputs increase
A)(i) only 
B)(ii) and (iii) 
C)(i) and (iii) 
D)(i), (ii) and (iii)

Quizplus · Accepted Answer

The statements (i) the marginal cost of cookie production is increasing, (ii) cookie production exhibits diminishing marginal product, and (iii) the slope of the production function increases as quantity of inputs increase are all true if the graph shows a production function where output increases at a decreasing rate as inputs are added, which is typical of diminishing marginal returns. This scenario leads to increasing marginal costs as more is produced, reflecting the principles of diminishing marginal product and the behavior of the production function's slope in such a context.

Graph 13-2 This Graph Depicts a Total Cost Function