………………..cost remains constant per unit of output irrespective of the level of output and thus fluctuates directly in proportion to changes in the volume of output

Question

Quizplus · Accepted Answer

Variable costs change directly in proportion to changes in the volume of output, meaning they remain constant per unit of output but the total variable cost fluctuates based on the level of output. Fixed costs, on the other hand, remain constant in total regardless of output levels. Marginal cost refers to the cost of producing one additional unit of a product, which can vary depending on several factors.

………………Cost Remains Constant Per Unit of Output Irrespective of the Level