In the short run, which of the following statements is correct?
A)The marginal cost curve intersects the average variable and average fixed cost curves at their minimum points.
B)Average variable cost declines continuously as total output is expanded.
C)Total cost will exceed variable cost.
D)If the inputs of all resources are increased by equal amounts, total output will expand by diminishing amounts.

Question

Quizplus · Accepted Answer

In the short run, total cost includes both fixed and variable costs, so it will always exceed variable cost.

In the Short Run, Which of the Following Statements Is