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

Question

Quizplus · Accepted Answer

In the short run, when total variable cost is increasing at an increasing rate, it means that for each additional unit produced, the cost of production is rising. This scenario leads to a positive and increasing marginal cost, as each additional unit costs more to produce than the previous one.

In the Short Run Where Total Variable Cost Is ________