When total cost or total variable cost is increasing, there are increasing marginal returns to the variable input.

Business

1 answer:

SVETLANKA909090 [29]3 years ago

3 0

Answer:

The correct answer is (B) False.

Explanation:

Variable costs, as the name implies, differ with the level of production and are associated with the use of variable factors, such as labor and raw materials. Since the amounts of factors increase as production increases, variable costs increase when it does.

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When total cost or total variable cost is​ increasing, there are increasing marginal returns to the variable input.

When total cost or total variable cost is increasing, there are increasing marginal returns to the variable input.