A rise in variable input prices will affect
A)fixed costs.
B)variable costs.
C)marginal costs.
D)a, b, and c
E)b and c

Question

Quizplus · Accepted Answer

A rise in variable input prices directly increases variable costs because these costs vary with the level of production. It also affects marginal costs, which are the costs of producing one more unit of a good or service, and these costs will increase as variable costs increase. Fixed costs, however, remain unchanged regardless of the level of production.

A Rise in Variable Input Prices Will Affect