As output increases

1.	As output increases
Answer» MC curve initially falls and then rises As OUTPUT increases when MC curve initially falls and then rises. The Marginal Cost curve is U shaped because initially when a firm increases its output, total costs, as well as variable costs, start to increase at a diminishing RATE. Then as output rises, the marginal cost increases.

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MC curve initially falls and then rises

As OUTPUT increases when MC curve initially falls and then rises. The Marginal Cost curve is U shaped because initially when a firm increases its output, total costs, as well as variable costs, start to increase at a diminishing RATE. Then as output rises, the marginal cost increases.

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As output increases

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