If variable cost at each output level doubles, then:
A)Average Total Cost doubles.
B)Average Fixed Cost doubles.
C)Marginal Cost remains unchanged.
D)Marginal Cost doubles.
E)Marginal Cost less than doubles.

Question

If variable cost at each output level doubles, then:​
A)Average Total Cost doubles.
B)Average Fixed Cost doubles.
C)Marginal Cost remains unchanged.
D)Marginal Cost doubles.
E)Marginal Cost less than doubles.

Quizplus · Accepted Answer

If variable cost at each output level doubles, it means that the additional cost of producing one more unit (i.e., the Marginal Cost) will also double. Therefore, the correct choice is (D) Marginal Cost doubles.

If Variable Cost at Each Output Level Doubles, Then:​

If Variable Cost at Each Output Level Doubles, Then: