Rebecca knows that Becca furniture's marginal cost curve is above the average total cost curve. this means Becca furniture's average total cost curve must be rising.
A cost curve is a graph that shows the costs of production as a function of the overall quantity produced in economics. A cost curve is the end result of productively efficient enterprises in a free-market economy optimizing their production process by minimizing costs consistent with each feasible level of production.
Cost curves are used to determine output volumes by profit-maximizing businesses. Total and average cost curves, marginal ("for each additional unit") cost curves, which are equal to the differential of the total cost curves, and variable cost curves are among the several types of cost curves that exist. While some applications are in the near term, others do so in the long term.
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