Because marginal cost is always ________ in the short run, total variable cost always ________ when output decreases.
A) positive; increases
B) positive; decreases
C) negative; increases
D) negative; decreases

Question

Quizplus · Accepted Answer

Marginal cost is always positive in the short run because it costs more to produce each additional unit. Therefore, when output decreases, total variable cost also decreases, as there are fewer units being produced, leading to lower costs associated with production.

Because Marginal Cost Is Always ________ in the Short Run