Short run marginal cost of the firm will be increasing when:

CA Foundation · Business Economics · MTP · April 2025
Short run marginal cost of the firm will be increasing when:
(A) A. average cost is decreasing
(B) B. total fixed cost is increasing
(C) C. average fixed cost is decreasing
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. total fixed cost is increasing

Topics: Theory of Production and Cost

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