Which of the following is an equation of a variable cost function?
A)y = a
B)y = a + bX
C)y = bX
D)y = b

Question

Quizplus · Accepted Answer

A variable cost function is a function that varies with the change in the quantity produced or sold. It can be represented as y = bX, where y is the total variable cost, X is the quantity produced or sold, and b is the variable cost per unit. Choice C, y=bX, represents a variable cost function as it shows the relationship between y (total variable cost) and X (quantity produced or sold) with a constant variable cost per unit.

Which of the Following Is an Equation of a Variable