Asked by
Anaid Sanchez
on Nov 04, 2024
Verified
Total variable cost ________ as output increases, and total fixed cost ________ as output increases.
A) increases; increases
B) increases; decreases
C) increases; does not change
D) does not change; does not change
Total Variable Cost
The sum of all variable costs associated with the production of a given level of output.
Total Fixed Cost
The sum of all costs required to produce any product or service that does not change with the level of output.
- Educate oneself on the structure and implications of fixed, variable, and aggregate costs.
- Contrast fixed and variable expenditures, acquiring knowledge of their behavior as output levels adjust.
Verified Answer
RG
Learning Objectives
- Educate oneself on the structure and implications of fixed, variable, and aggregate costs.
- Contrast fixed and variable expenditures, acquiring knowledge of their behavior as output levels adjust.