The firm's variable cost include costs that
A) change as the price of the good changes
B) change as the firm's output changes
C) can never be changed
D) can only be changed in the long run
E) change with economies of scale and remain unchanged with diseconomies of scale

Question

Quizplus · Accepted Answer

Variable costs change as the firm's output changes. These costs vary directly with the level of production, such as materials and labor costs used in the production process.

The Firm's Variable Cost Include Costs That