A logarithmic variable cost function implies that:

A) marginal cost is increasing at a decreasing rate.
B) marginal cost is increasing at an increasing rate.
C) marginal cost is constant.
D) marginal cost is decreasing as quantity increases.

Logarithmic Variable Cost Function

A formula representing the variable costs of production as a logarithmic function, indicating how these costs evolve as production volume changes.

Increasing Rate

Often refers to a situation where the rate of change of a variable is accelerating; a concept applicable in various economic, financial, and mathematical contexts.