Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units.Which of the following are true?
A)VC rise by $300
B)VC rise by $1,800
C)VC rise by $1,500
D)VC rise by $0

Question

​Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units.Which of the following are true?
A)​VC rise by $300
B)VC rise by $1,800
C)VC rise by $1,500
D)​VC rise by $0

Quizplus · Accepted Answer

The increase in total costs from $1,500 to $1,800, which is $300, when output increases, reflects the rise in variable costs (VC) since fixed costs do not change with output levels.

​Total Costs Increase from $1,500 to $1,800 When a Firm

Total Costs Increase from $1,500 to $1,800 When a Firm