Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. The price of cocoa beans shot up 44 percent in 2008. How did this affect Rogue's short run costs?
A) Short run variable costs would increase.
B) Short run fixed costs would decrease.
C) Short run total costs would decrease.
D) Short run average fixed costs would increase.

Question

Quizplus · Accepted Answer

The increase in the price of cocoa beans, a key ingredient, would raise the variable costs for Rogue Chocolatier in the short run.

Minneapolis Business Rogue Chocolatier Sells Specialty Chocolate Bars with a High