If total cost increases as output increases, then what can we conclude about marginal cost?
A) It must be equal to zero.
B) It must be increasing.
C) It must be positive.
D) It must be negative.

Question

Quizplus · Accepted Answer

If total cost increases as output increases, it means that the cost of producing each additional unit of output (marginal cost) must also be positive, since producing more units raises the overall cost. Therefore, choice C, which states that the marginal cost must be positive, is the correct answer. Choices A, B, and D can be ruled out because they do not necessarily follow from the given information.

If Total Cost Increases as Output Increases, Then What Can