Which of the Following Is True If the Total Variable

question 113

Multiple Choice

Which of the following is true if the total variable cost curve is increasing at an increasing rate?

• A) Average fixed cost is increasing.
• B) Marginal cost is decreasing.
• C) Marginal cost is increasing.
• D) Average fixed cost is constant.

---

Definitions:

Per Unit Basis

A method of calculating financial figures or metrics for each individual unit of production or sale.

Direct Product Cost

Expenses directly associated with the production of specific goods or services, including materials and labor.

Cocoa

A powder made from roasted and ground cacao seeds used in making chocolate and chocolate-based products.

Factory

A building or set of buildings where goods are manufactured or assembled chiefly by machine.