Introduction:
Marginal cost refers to the extra cost incurred by a firm due to an increase in output by one unit. The marginal cost curve, therefore, is a graphical representation used to show the increase in costs incurred by a firm with each successive increase of a unit of output. The marginal cost curve of a firm can take several shapes such as; a rounded check mark, a flat line or an upwardly sloped line (Baumol& Blinder, 2011).
The rounded check mark marginal cost curve:
Any firm that portrays an initial decline in marginal costs with an increase in output up to some point from which any increase in output results, in increasing marginal ...
