The costs associated with variable factors of production are _______ costs and the costs associated with _______ factors of production are _______ costs.
A) variable; fixed; fixed
B) fixed; fixed; variable
C) variable; fixed; variable
D) fixed; fixed; fixed

Question

Quizplus · Accepted Answer

The costs associated with variable factors of production are variable costs because they change with the level of output, and the costs associated with fixed factors of production are fixed costs because they do not change with the level of output.

The Costs Associated with Variable Factors of Production Are _______