The two types of costs a marketer needs to consider when setting prices are:
A) primary and secondary
B) variable and fixed
C) marginal and absolute
D) short-term and long-term
E) elastic and inelastic

Question

Quizplus · Accepted Answer

A variable cost is a cost that varies with changes in the level of outputs (e.g. ,cost of materials),whereas a fixed cost does not change as output is increased or decreased (e.g. ,rent).

The Two Types of Costs a Marketer Needs to Consider