A firm's total cost of production
A)always increases as it produces more output
B)can increase or decrease as it produces more output
C)increases at a decreasing rate as long as it produces more output
D)is fixed in the short run,because inputs are fixed in the short run
E)can be minimized by producing where the firm's demand curve crosses the horizontal axis

Question

Quizplus · Accepted Answer

As a firm produces more output, its total cost of production always increases because it incurs additional costs for the additional output, even if the rate of increase may vary.

A Firm's Total Cost of Production