Author Question: A sudden rise in input prices which drives up the marginal cost of producing automobiles will shift ... (Read 91 times)

james0929 · **on:** Jun 30, 2018

A sudden rise in input prices which drives up the marginal cost of producing automobiles will shift the supply curve of automobiles upward.
Indicate whether the statement is true or false

Question 2

Which of the following is true of marginal cost?
a. Marginal cost is the cost per unit of output produced.
b. Marginal cost is the change in total cost divided by the change in total output.
c. Marginal cost curve is negatively sloped at the profit-maximizing level of output.
d. Marginal cost is equal to total cost divided by the quantity of output.
e. Marginal cost initially increases with an increase in output but subsequently declines.