If a firm increases production,then its:
A) variable costs rise.
B) fixed costs stay the same.
C) total costs increase.
D) All of these are true.

Question

Quizplus · Accepted Answer

When a firm increases production, variable costs rise because they depend on the level of output. Fixed costs remain unchanged as they do not vary with production levels. Consequently, total costs, which are the sum of fixed and variable costs, also increase.

If a Firm Increases Production,then Its