If a firm increases its output level in the short run,then
A)variable cost rises but fixed cost remains unchanged
B)both variable cost and fixed cost rise
C)variable cost rises,but fixed cost fall
D)both variable cost and fixed cost fall
E)variable cost remains unchanged,but fixed cost rises

Question

Quizplus · Accepted Answer

In the short run, fixed costs remain the same as they are difficult to change in the short term. However, variable costs increase as more inputs (such as labor or materials) are required to produce more output. Therefore, choice A is the correct answer.

If a Firm Increases Its Output Level in the Short