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Sergeeva-Olga [200]
3 years ago
5

Graphically, the marginal cost curve is A. a U​ shape, initially falling when the marginal product of labor is rising and then e

ventually rising when the marginal product of labor is falling. B. shaped like a​ hill, rising when the average cost of production is rising and then eventually falling when the average cost of production is falling. C. shaped like a​ hill, initially rising when the marginal product of labor is falling and then eventually falling when the marginal product of labor is rising. D. a U​ shape, initially falling when the marginal product of labor is below marginal cost and then eventually rising when the marginal product of labor is above marginal cost. E. a U​ shape, initially falling due to diminishing returns and then eventually rising due to division of labordivision of labor.
Business
1 answer:
maw [93]3 years ago
7 0

Answer:

The correct answer is option A.

Explanation:

Marginal cost is the cost of producing an additional unit of output. It is the increase in the total cost when an additional unit of output is produced.  

The marginal cost curve is a U shaped curve. Initially, the marginal product of labor is rising, so the marginal cost will be decreasing. But after reaching a certain maximum point, the marginal product of labor starts declining. At the same time, the marginal cost of production will start rising.

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