As output increases
As output increases
A). MC curve initially falls and then rises
B). MC initially rises and then falls
C). MC continuously rises
D). None of the above
1 answers
MC curve initially falls and then rises
As output increases when MC curve initially falls and then rises. The Marginal Cost curve is U shaped because initially when a firm increases its output, total costs, as well as variable costs, start to increase at a diminishing rate. Then as output rises, the marginal cost increases.
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