If a Firm Increases Its Output Level in the Short

question 37

Multiple Choice

If a firm increases its output level in the short run,then

• A)variable cost rises but fixed cost remains unchanged
• B)both variable cost and fixed cost rise
• C)variable cost rises,but fixed cost fall
• D)both variable cost and fixed cost fall
• E)variable cost remains unchanged,but fixed cost rises

---

Definitions:

Physical

Relating to the body as opposed to the mind, or relating to material things.

Social

Relating to society or its organization, emphasizing the interaction and relationships of individuals within a community.

Psychiatrist

A medical doctor specialized in diagnosing, preventing, and treating mental illnesses.

Mind

The aspect of intellect and consciousness experienced as combinations of thought, perception, memory, emotion, will, and imagination, including all unconscious cognitive processes.