Variable costs within the relevant range for a firm are assumed:
A)Not to vary per unit.
B)Not to vary in total.
C)To be nonlinear.
D)To be curvilinear.
E)None of the above are correct.

Question

Quizplus · Accepted Answer

Variable costs within the relevant range are assumed to vary per unit. This means that as the level of production increases, the total variable costs will also increase in proportion to the number of units produced. Therefore, B, C, D, and E are not correct.

Variable Costs Within the Relevant Range for a Firm Are