Refer to Table 13-9. For the firm whose production function and costs are specified in the table, its total-cost curve is

A) constant.
B) increasing at a decreasing rate.
C) increasing at an increasing rate.
D) unknown because there is no relationship between a firm's production function and its total-cost curve.

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Chad-Tyler Migkins · Accepted Answer

Final Answer : C, Explanation :  The total cost is the sum of fixed and variable costs. As labor increases, the variable cost increases, causing the total cost to increase. The increase in total cost is at an increasing rate due to diminishing marginal returns, as each additional worker contributes less to output than the previous one.

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