As Output Increases,total Cost Also Increases.Therefore

question 12

Multiple Choice

As output increases,total cost also increases.Therefore,

• A) marginal cost is increasing.
• B) marginal cost is positive.
• C) average fixed costs are increasing.
• D) all of the above

---

Definitions:

Monopoly Firms

Companies that are the sole provider of a product or service in a market, leading to a lack of competition.

Marginal Cost

The expense associated with manufacturing an extra unit of a product or service.

Monopolistic Competition

refers to a market structure where many firms sell products that are similar but not identical, each having some control over its price.

Product Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.