Which of the following statements is correct?
A) As output increases, total cost and total fixed cost increase by the same amount.
B) As output increases, total cost and total fixed cost increase but not necessarily by the same amount.
C) As output increases, total cost increases and total fixed cost decreases.
D) Total fixed cost plus total variable cost equals total cost.

Question

Quizplus · Accepted Answer

Total cost is the sum of total fixed cost and total variable cost. Total fixed cost does not change with output, while total variable cost changes with output.

Which of the Following Statements Is Correct