In the short run, marginal cost is positive and decreasing 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

When marginal cost is positive and decreasing, it indicates that total variable cost is increasing at a decreasing rate.

In the Short Run, Marginal Cost Is Positive and Decreasing