In Figure 7.3, when total cost increases at an increasing rate, the cost of producing an additional unit of output: Figure 7.3 Two graphs stacked vertically-TC on the upper graph, MC on the lower graph; for the same levels of output Q there is DMR and TC curves up; for the same levels of output Q where there is DMR, MC slopes upward In Figure 7.3, when total cost increases at an increasing rate, the cost of producing an additional unit of output: is constant. decreases. increases. does not change