Question

Buford Bus Manufacturing installs a new assembly line. As a result, the output produced per worker increases. The marginal cost of output at Buford:

a. will increase (the MC curve will shift upward).
b. will decrease (the MC curve will shift downward).
c. is at its maximum.
d. is declining and approaching zero. Selected:e. will be unchanged.

Answer 1

A. will increase (the MC curve will shift upward )

Step-by-step explanation:

The marginal cost of production is the change in total production cost that comes from making or producing one additional unit of a commodity, hence Buford Bus Manufacturing installing a new assembly line and worker's output increasing per worker would increase the additional cost of production or marginal cost incurred by the company.