A ____ total cost function implies that marginal costs ____ as output is increased.
A) linear; increase linearly
B) quadratic; increase linearly
C) cubic; increase linearly
D) a and b
E) none of the above

Question

Quizplus · Accepted Answer

A quadratic total cost function implies that the marginal cost, which is the derivative of the total cost function, increases linearly as output is increased.

A ____ Total Cost Function Implies That Marginal Costs ____

A Total Cost Function Implies That Marginal Costs