Answer to Question #118324 in Microeconomics for R.K.Brar

Question

MC curve is a mirror image of MP curve..explain it with economic reason.

Answer 1

MC curve is a mirror image of MP curve because productivity and costs have a reciprocal relationship.The marginal cost increases as output rises when total costs and variable costs starts to increase at a diminishing rate. At this stage the MP falls and MC starts rising forming a U-shaped curve.