From the data provided it can be inferred that , for production levels in the range of 0 to 60 units:

A MC is an increasing function of production quantity .
B MC is a decreasing function of production quantity
C Initially MC is a decreasing function of production quantity, attains a minimum and then it is an increasing function of production quantity.
D None of them

Correct Answer: MC is an increasing function of production quantity .

It can be seen that the marginal cost is increasing as production quantify is increasing. So, option (a) is the correct ans.
Bissoy MCQ
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