Total variable costs
A) increases as output increases.
B) decreases as output decreases.
C) equal a variable rate * amount of output.
D) all of these are correct.

Question

Quizplus · Accepted Answer

Total variable costs change with the level of output, increasing as output increases and decreasing as output decreases. This is consistent with the definition of variable costs, which vary with the level of production or activity.

Total Variable Costs