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What will cause a firm's marginal cost curve to shift upward?
The marginal cost curve will shift up when the marginal cost of producing a given quantity of output is higher.
What causes marginal cost to increase?
The long-run marginal cost of production is the increased cost incurred during production when every input is variable. It is the additional cost that results when a company scales up its operations by adding more employees, expanding a factory, or venturing into a new market.
How does a marginal cost curve move?
Both these curves are intersected at their minimum points by Marginal Cost (MC), which slopes upward. If the price of the variable input increases all three cost curves move upwards as shown alongside.
Do increasing marginal costs result from the rising wages of workers?
Well, wages affect the marginal cost, the average variable cost, and the average total cost. If wages go up, we will see that each of these cost curves will have to rise to reflect new higher costs from higher wages. In fact, all of the cost curves will shift up together.