The typical marginal cost curve will be ______ and the typical average total cost curve will be ______.

Question

BlackTom AI · Accepted Answer

Start by identifying the standard shapes for these cost curves in typical microeconomics analysis.
Option 1: 'Upward sloping; U-shaped' — This aligns with the common characterization where marginal cost (MC) rises as output increases due to diminishing marginal returns in production, so MC is generally upward-sloping after some point. The average total cost (ATC) curve is typically U-shaped because ATC falls when output expands due to spreading fixed costs, reaches a minimum, and then rises as variable costs dominate. This option matches the conventional pattern for MC and ATC.
Option 2: 'U-shaped; Downward sloping' — Here MC is described as U-shaped, which is inconsistent with the usual single rising MC after a point; the marginal cost curve is not typically U-shaped in the sense of first falling and then rising in the standard short-run cost framework. Moreover, ATC being downward sloping is incorrect in the long run sense of the standard cost behavior, since ATC is U-shaped rather than constantly declining.
Option 3: 'U-shaped; Upward sloping' — This reverses the expected relationship: MC is not generally U-shaped in the classic sense (it tends to rise after a point rather than follow a U with a distinct minimum like ATC), and ATC being Upward sloping contradicts the typical U-shaped pattern where ATC falls at first.
Option 4: 'Downward sloping; U-shaped' — A downward-sloping MC is not characteristic of the standard short-run production setting, where adding more units tends to increase marginal cost due to diminishing returns. While ATC being U-shaped is correct, pairing it with a downward-sloping MC makes this option incorrect overall.
In summary, only Option 1 coherently matches the textbook depiction: MC is generally upward sloping, and ATC is U-shaped, reflecting fixed costs spread over more output at low levels and variable costs dominating at higher levels.

econ_102_120251_245625 Week 11 Quiz

The typical marginal cost curve will be and the typical average total cost curve will be .

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econ_102_120251_245625 Week 11 Quiz

The typical marginal cost curve will be ______ and the typical average total cost curve will be ______.

View Explanation

Log in for full answers

Similar Questions

If a firm's average total cost decreases as the firm increases its output, the firm's marginal cost must be

When the average total cost curve is at its minimum, we know that the

In the short run, ATC curve and AVC curve converge as output increases because

When the average variable cost curve is upward sloping, the marginal cost curve:

When the average variable cost curve is upward sloping, the marginal cost curve:

If the marginal cost curve is U-shaped,

In the diagram, A represents a firm's _____ curve, B represents its _____ curve, and C represents its _____ curve.

If a new tax on capital increases a firm’s fixed cost of production, which of the following will occur in the short run?

More Practical Tools for Students Powered by AI Study Helper

Making Your Study Simpler

The typical marginal cost curve will be and the typical average total cost curve will be .

In the diagram, A represents a firm's ___ curve, B represents its _ curve, and C represents its ___ curve.