______________ include all of the costs of production that increase with the quantity produced.
A) Fixed costs
B) Variable costs
C) Average costs
D) Average variable costs

Question

Quizplus · Accepted Answer

Variable costs include all of the costs of production that increase with the quantity produced, such as materials and labor directly involved in production. Fixed costs, on the other hand, do not vary with the level of production. Average costs and average variable costs are measures of cost per unit, not total costs that change with production quantity.

______________ Include All of the Costs of Production That Increase