As a firm produces more units of a good, its
A)fixed costs remain constant in the short run and its variable costs rise.
B)variable costs decline in the short run and its fixed costs rise.
C)fixed and variable costs remain constant in the short run.
D)variable costs remain constant in the short run and its fixed costs fall.
E)none of the above

Question

Quizplus · Accepted Answer

Fixed costs do not change with the level of production in the short run, while variable costs increase as more units of a good are produced.

As a Firm Produces More Units of a Good, Its