Q131
Which cost increases continuously with the increase in production?
A.
Avearge cost
B.
Marginal cost
C.
Fixed cost
D.
Variable cost
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Variable cost increases continuously with the increase in production. Variable cost varies at different level of output, this implies that when the output of a particular firm is at zero, the variable cost will be zero and when there is increase in production of output, there will also be a corresponding increase in the variable cost.