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Worldatwork CECP Exam - Topic 1 Question 99 Discussion

What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?
D) It becomes increasingly higher as revenues increase.
A) It remains the same.
B) It decreases because variable costs are increasing.
C) It increases at the same rate as variable costs.

Worldatwork CECP Exam - Topic 1 Question 99 Discussion

Actual exam question for Worldatwork's CECP exam
Question #: 99
Topic #: 1
[All CECP Questions]

What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

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Suggested Answer: D

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Laurel
3 days ago
Wait, how can it stay the same if costs are rising?
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Kristel
8 days ago
I think it actually increases with variable costs.
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Marcelle
13 days ago
Marginal cost stays the same if fixed costs are constant.
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Zita
18 days ago
I feel like I saw something similar where marginal cost increased as variable costs went up, but I can't recall if it was directly related to revenue changes.
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Barrett
23 days ago
I’m a bit confused about how fixed costs play into this. Does that mean marginal cost could stay the same if revenue is just lagging behind variable costs?
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Justine
28 days ago
I remember a practice question where fixed costs stayed the same, and it seemed like marginal cost would rise if variable costs were outpacing revenue.
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Reynalda
1 month ago
I think if revenue is increasing slower than variable costs, the marginal cost might actually increase, but I'm not sure if it’s at the same rate.
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