Variable cost
A) depends on the number of units produced.
B) plus marginal cost equals fixed cost.
C) is equal to total cost in deterministic models.
D) is the same as average cost.

Question

Quizplus · Accepted Answer

Variable cost is a cost that varies with the level of production output. As more units are produced, variable costs increase, and as fewer units are produced, variable costs decrease. This makes choice A the correct answer.

Variable Cost