Suppose output increases in the short run, than the Total cost will:
A. increase due to an increase in fixed costs only.
B. increase due to an increase invariable costs only.
C. increase due to an increase in bothfixed and variable costs.
D. decrease if the firm is in the regionof diminishing returns.
Answer:B
Suppose output increases in the short run, than the Total cost will:
A. increase due to an increase in fixed costs only. B. increase due to an increase invariable costs only. C. increase due to an increase in bothfixed and variable costs. D. decrease if the firm is in the regionof diminishing returns.