Which of the following is most likely to be a variable cost in the short run?
A) A fee paid to obtain a license.
B) The cost of owning machinery.
C) The energy costs of running a factory.
D) Rent payments for office space.

Question

Quizplus · Accepted Answer

Energy costs are typically variable in the short run as they can fluctuate based on usage and production levels. Fees for obtaining a license and rent payments for office space are generally fixed costs in the short run, while the cost of owning machinery may include elements of both fixed and variable costs.

Which of the Following Is Most Likely to Be a Variable