In the short run where total variable cost is ________ at a(n) ________ rate, marginal cost is positive and decreasing.
A) increasing; increasing
B) increasing; decreasing
C) decreasing; increasing
D) decreasing; decreasing

Question

Quizplus · Accepted Answer

In the short run, if total variable cost is increasing at a decreasing rate, it means that the cost of producing each additional unit is falling, which results in a positive but decreasing marginal cost.

In the Short Run Where Total Variable Cost Is ________