A variable cost is one that changes _____
A)only in the long run.
B)only in the short run.
C)year to year.
D)month to month.
E)as the level of output changes.

Question

Quizplus · Accepted Answer

Variable costs are costs that change as the level of output changes. This means that the cost will increase as more products are produced or decrease as fewer products are produced. Therefore, the best choice is E.

A Variable Cost Is One That Changes _____