Question

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

(A) True
(B) False

Answer 1

The correct answer is (B) False.

Step-by-step 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.