Asked by
Urskin Winston
on Nov 04, 2024
Verified
Because marginal cost is always ________ in the short run, total variable cost always ________ when output decreases.
A) positive; increases
B) positive; decreases
C) negative; increases
D) negative; decreases
Marginal Cost
The change in total cost that arises when the quantity produced is incremented by one unit.
Total Variable Cost
The sum of all costs that vary with output level, including costs of labor, materials, and other inputs that change with the level of production.
- Analyze the various stages of production, such as increasing returns, diminishing returns, and negative returns, in accordance with the principle of diminishing marginal returns.
- Apply the concept of diminishing marginal returns to analyze its impact on cost curves and decision-making in production.
Verified Answer
AP
Learning Objectives
- Analyze the various stages of production, such as increasing returns, diminishing returns, and negative returns, in accordance with the principle of diminishing marginal returns.
- Apply the concept of diminishing marginal returns to analyze its impact on cost curves and decision-making in production.