Question

If total production increases in the short run, the total cost will also __________.

• A. increase due to increase in fixed cost
• B. increase due to increase in variable cost
• C. increase due to increase in total cost
• D. remains constant

Answer 1

The correct option is B increase due to increase in variable cost

Variable cost is directly proportional to the amount of output produced so even as fixed cost remains constant, the addition of the variable cost will increase the total cost in line with the level of production.