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Relationship Between Total Cost and Marginal Cost
In many economic models of short-run production, the total cost of production initially increases at a decreasing rate and then begins to increase at an increasing rate as output expands. Describe the shape of the corresponding marginal cost curve that results from this pattern of total cost. Explain the fundamental relationship between the slope of the total cost curve at any given point and the value of the marginal cost at that same level of output.
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