The sum of the expenses of the firm that change with the quantity of the product that is produced and sold is referred to as
A)fixed cost.
B)total cost.
C)marginal cost.
D)unit cost.
E)variable cost.

Question

Quizplus · Accepted Answer

The sum of the expenses that change with the quantity of the product that is produced and sold is referred to as variable cost. This is in contrast to fixed costs, which do not vary with the quantity produced and sold, and total cost, which includes both fixed and variable costs. Marginal cost refers to the cost of producing one additional unit of output, while unit cost is calculated by dividing total cost by the number of units produced.

The Sum of the Expenses of the Firm That Change