Which of the following best describes total variable costs?
A) They increase as production increases.
B) They decrease as production increases.
C) They are costs associated with short-run fixed capital.
D) They are so named because they vary from firm to firm within an industry.

Question

Quizplus · Accepted Answer

Total variable costs are costs that vary directly with changes in the level of production. As production increases, the total variable costs also increase.

Which of the Following Best Describes Total Variable Costs