A variable cost in total
A) increases as output increases and decreases as output decreases.
B) increases as output increases and/or decreases.
C) remains constant no matter the level of output.
D) increases as output decreases and decreases as output increases.

Question

Quizplus · Accepted Answer

Variable costs are costs that vary with the level of output. As output increases, variable costs also increase, and as output decreases, variable costs decrease. This makes option A the correct choice.

A Variable Cost in Total