What is total variable cost?

Question

Quizplus · Accepted Answer

Total variable cost is the total of all costs that vary with the level of output. This means that as the level of output increases, the total variable cost will also increase since more resources and inputs are needed to produce more output. Choice A is describing fixed costs, which do not vary with the level of output, while choice C is a combination of fixed costs and marginal costs. Choice D describes marginal cost, which is the increase in total cost resulting from producing one more unit of output, but does not refer to total variable cost.

What Is Total Variable Cost