Question

"which always increase(s) as output increases?"

a. marginal cost only
b. total cost only
c. variable cost only
d. total cost and variable cost
e. fixed cost only

Answer 1

Answer: d. total cost and variable cost

A variable cost is a company expense that changes in parallel with production output. They rise as production increases.

Total cost refers to the total company expense incurred in producing a particular level of output. Same with the variable cost, it increases as production increases.