Tomas manages a Pizza Hut restaurant and is considering changing the hours of the restaurant by keeping it open later on Friday and Saturday nights. He is concerned about the additional costs of labor and ingredients this decision will create. What type of costs is Tomas concerned with?
A)inelastic
B)total
C)variable
D)elastic
E)fixed

Question

Quizplus · Accepted Answer

Tomas is concerned about the costs of labor and ingredients, which are both variable costs. Variable costs vary with the level of output or sales, so increasing the operating hours will increase these costs. Therefore, the type of costs Tomas is concerned with is variable costs.

Tomas Manages a Pizza Hut Restaurant and Is Considering Changing