In the short run,the greater the level of output,the
A) greater the average fixed cost.
B) lower the total fixed cost.
C) greater the total fixed cost.
D) lower the total variable cost.
E) greater the total variable cost.

Question

Quizplus · Accepted Answer

In the short run, as the level of output increases, the total variable cost also increases because more resources (which are variable costs) are required to produce more output. Fixed costs remain unchanged regardless of the level of output.

In the Short Run,the Greater the Level of Output,the