Total variable cost:
A) is zero when the quantity produced is zero.
B) is the sum of those changing expenses that are closely related to output.
C) may increase as the quantity produced is increased.
D) All of these alternatives are correct.

Question

Quizplus · Accepted Answer

Total variable cost includes all changing expenses that are closely related to output, therefore it will increase as the quantity produced is increased. Additionally, when the quantity produced is zero, there will be no variable costs. Thus, all of the given alternatives are correct.

Total Variable Cost