Table 5.4-Plant costs
This table shows total costs at different output levels for a given plant.
-In Table 5.4,variable cost,
A) Is equal to $25 at an output of 10 units.
B) Is the greatest at an output of zero units.
C) Decreases as output increases.
D) Is equal to $40 at every output level.

Question

Table 5.4-Plant costs
This table shows total costs at different output levels for a given plant. 
-In Table 5.4,variable cost,
A) Is equal to $25 at an output of 10 units. 
B) Is the greatest at an output of zero units. 
C) Decreases as output increases. 
D) Is equal to $40 at every output level.

Quizplus · Accepted Answer

Variable cost changes with the level of output, so it cannot be greatest at zero units (B), decrease as output increases (C), or be constant at every output level (D). Therefore, it can be equal to a specific amount ($25) at a certain output level (10 units), as variable costs typically vary with the amount produced.

Table 5.4-Plant Costs This Table Shows Total Costs at Different Output Levels for Output