Question 1
Because marginal cost is always ________ in the short run, total variable cost always ________ when output decreases.
◦ positive; increases
◦ positive; decreases
◦ negative; increases
◦ negative; decreases
Question 2
In the short run marginal cost is positive and increasing at output levels where total variable cost is ________ at a(n) ________ rate.
◦ increasing; increasing
◦ increasing; decreasing
◦ decreasing; increasing
◦ decreasing; decreasing