In the short run, marginal cost is positive and increasing at output levels where total variable cost is ________ at a(n) ________ rate.
A) increasing; increasing
B) increasing; decreasing
C) decreasing; increasing
D) decreasing; decreasing

Question

Quizplus · Accepted Answer

In the short run, marginal cost is positive and increasing at output levels where total variable cost is increasing at an increasing rate. This is because marginal cost reflects the additional cost of producing one more unit, and if the total variable cost is increasing at an increasing rate, it means it costs more and more to produce each additional unit, leading to a rising marginal cost.

In the Short Run, Marginal Cost Is Positive and Increasing