(Table: Bonnie's Production Function for Good Z)Use Table: Bonnie's Production Function for Good Z.The costs that vary with Bonnie's level of production are her:
A)fixed costs.
B)variable costs.
C)rent and insurance.
D)costs that remain the same regardless of what she produces.

Question

(Table: Bonnie's Production Function for Good Z)Use Table: Bonnie's Production Function for Good Z.The costs that vary with Bonnie's level of production are her: 
A)fixed costs. 
B)variable costs. 
C)rent and insurance. 
D)costs that remain the same regardless of what she produces.

Quizplus · Accepted Answer

The costs that vary with production level are classified as variable costs. These costs increase or decrease as the level of production changes, unlike fixed costs which remain constant regardless of production level. Rent and insurance may be fixed costs, but they are not necessarily related to Bonnie's level of production for Good Z.