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Marginal Private Cost (MPC)
Upward Slope of MPC in Weevokil Banana Production
In the Weevokil banana production example, the marginal private cost (MPC) curve slopes upward as output (Q) increases. This is because as more land is used intensively for cultivation, the amount of Weevokil needed per extra ton of bananas rises, increasing the growers' production cost. This visual characteristic corresponds to the mathematical property that the second derivative of the private cost function is positive ().
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CORE Econ
Introduction to Microeconomics Course
Ch.10 Market successes and failures: The societal effects of private decisions - The Economy 2.0 Microeconomics @ CORE Econ
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Upward Slope of MPC in Weevokil Banana Production
Profit-Maximizing vs. Pareto-Efficient Output Conditions
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