If total cost increases the marginal cost is positive?
Question: If total cost increases the marginal cost is positive?
If total cost increases, the marginal cost is positive. Marginal cost is the change in total cost resulting from a one-unit increase in output. Therefore, if total cost increases, it means that producing one additional unit of output must have incurred some additional cost. This additional cost is the marginal cost.
For example, imagine a firm that produces widgets. The firm's total cost of producing 100 widgets is $1000. The firm's average cost of production is $10 per widget (total cost of $1000 divided by the number of units produced, 100).
Suppose the firm produces one additional unit of output. The total cost of production increases to $1001. The average cost of production also increases to $10.01 per widget. This means that the marginal cost of producing the 101st widget is $1.
Therefore, if total cost increases, the marginal cost is positive.
It is important to note that the marginal cost curve can be upward sloping, downward sloping, or U-shaped. However, regardless of the shape of the marginal cost curve, if total cost increases, the marginal cost must be positive.
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