In the short run,which of the following is most likely a variable cost?
A)Contractual lease payments.
B)Labor and raw materials costs.
C)Property taxes.
D)Interest payments on borrowed funds.

Question

Quizplus · Accepted Answer

In the short run, labor and raw materials costs are most likely to be variable, as businesses can adjust these costs based on the level of output or production. Contractual lease payments, property taxes, and interest payments on borrowed funds are typically fixed costs in the short run, as they do not vary with changes in production levels.

In the Short Run,which of the Following Is Most Likely