The reason the change in total cost divided by the change in output is equal to the change in total variable cost divided by the change in output, is because
A)total variable cost rises as output rises.
B)of the law of diminishing marginal returns.
C)total fixed cost does not change as output changes.
D)total cost does not change as output changes.

Question

Quizplus · Accepted Answer

The change in total cost divided by the change in output equals the change in total variable cost divided by the change in output because total fixed cost remains constant regardless of the level of output. This means that any change in total cost as output changes is due solely to changes in total variable cost.

The Reason the Change in Total Cost Divided by the Change