If a firm's total cost curve is a straight line, then its marginal cost curve will be defined by a horizontal straight line.

Question

Quizplus · Accepted Answer

If a firm's total cost curve is a straight line, it means that costs increase at a constant rate as output increases. Therefore, the marginal cost, which is the cost of producing one more unit of output, remains constant, resulting in a horizontal marginal cost curve.

If a Firm's Total Cost Curve Is a Straight Line