Question 14
Theory of Costs and RevenueWhich of the curves in the diagram below represents the firm's marginal cost (MC)?
- A.Curve P
- B.Curve N
- C.Curve M
- D.Curve L
Show the answer and explanation
Answer: D (Curve L)
Explanation
The MC curve is the steep curve that falls a little and then rises sharply, cutting the U-shaped average curves at their lowest points: curve L.