Answer to Question #60223 in Microeconomics for Bob

Question

A logarithmic variable cost function implies that, select one

a. marginal cost is increasing at a decreasing rate.
b. marginal cost is increasing at an increasing rate.
c. marginal cost is constant.
d. marginal cost is decreasing as quantity increases.

Answer 1

A logarithmic variable cost function implies that, select one marginal cost is increasing at an increasing rate.
So, the correct answer is b.