Multiple choice

When the production of an industrial concern increases, which cost increases continuously?

  1. Fixed cost

  2. Variable cost

  3. Marginal Cost

  4. Average cost
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Variable costs increase continuously with production volume because they include expenses like raw materials, direct labor, and utilities that scale directly with output. Fixed costs remain constant regardless of production levels.

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