Which of the following costs are always increasing as output increases?
A) Marginal Cost only
B) Fixed Cost only
C) Total Cost only
D) Variable Cost only
E) Total Cost and Variable Cost

Question

Quizplus · Accepted Answer

Total cost includes both fixed and variable costs, but fixed costs remain constant regardless of the level of output. Therefore, as output increases, total cost and variable cost will always increase. Marginal cost may eventually decrease due to economies of scale, and fixed costs stay the same.

Which of the Following Costs Are Always Increasing as Output