The variable cost function and the total product function are:
A)transformed into each other by the Cobb- Douglas function.
B)derived from each other through the cost of the variable product.
C)unrelated to each other.
D)related to each other by consumers' preferences.

Question

Quizplus · Accepted Answer

The variable cost function and the total product function are related because the variable cost is derived from the cost of producing each unit of output, which is directly related to the total product function. The total product function describes the output level for a given amount of input, and the variable cost function reflects the cost of variable inputs used to produce that output.

The Variable Cost Function and the Total Product Function Are