As output increases, total cost ________, total fixed cost ________, and total variable cost ________.
A) increases; increases; increases
B) increases; increases; does not change
C) increases; does not change; increases
D) does not change; increases; increases

Question

Quizplus · Accepted Answer

As output increases, total cost increases because it is the sum of total fixed cost and total variable cost. Total fixed cost does not change with output, while total variable cost increases as more output is produced.

As Output Increases, Total Cost ________, Total Fixed Cost ________

As Output Increases, Total Cost , Total Fixed Cost