Total costs in the above table are
A)decreasing at a constant rate.
B)decreasing at an decreasing rate.
C)increasing at a constant rate.
D)increasing at an increasing rate.

Question

Quizplus · Accepted Answer

The total cost is decreasing, but the rate of decrease is decreasing as well. This can be seen by the fact that the difference between the total costs is decreasing as the quantity increases. For example, the difference between the total costs for 1 and 2 units is $100, but the difference between the total costs for 3 and 4 units is only $40. Therefore, the total costs are decreasing, but at a decreasing rate.

Total Costs in the Above Table Are