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

Question

Quizplus · Accepted Answer

Variable costs are costs that vary with the level of output or production. As output changes, variable costs change accordingly. This means that as production increases, variable costs will increase, and as production decreases, variable costs will decrease. Therefore, the best answer is E.

A Variable Cost Is One That Changes