A ____ total cost function implies that marginal costs ____ as output is increased.
A) linear; increase linearly
B) quadratic; are constant
C) cubic; increase linearly
D) linear; are constant
E) none of the above

Question

Quizplus · Accepted Answer

A linear total cost function implies that the marginal cost is constant, regardless of the level of output. Therefore, as output increases, the marginal cost remains constant. Among the given choices, only option D meets this requirement.

A ____ Total Cost Function Implies That Marginal Costs ____

A Total Cost Function Implies That Marginal Costs