Which of the following is true if the total variable cost curve is increasing at an increasing rate?
A) Average fixed cost is increasing.
B) Marginal cost is decreasing.
C) Marginal cost is increasing.
D) Average fixed cost is constant.

Question

Quizplus · Accepted Answer

If the total variable cost curve is increasing at an increasing rate, this means that the marginal cost of producing each additional unit is increasing. This is because as more units are produced, the additional costs required to produce each additional unit become greater. Therefore, C is the correct answer. Choices A and D are not necessarily true and choice B is incorrect because the marginal cost is actually increasing, not decreasing.

Which of the Following Is True If the Total Variable