An example of a variable cost to the firm is the
A) monthly rent it pays based on a multiple-year lease
B) cost of shipping the goods it produces
C) property taxes it pays
D) interest payments on a bank loan
E) entrepreneur's opportunity cost

Question

Quizplus · Accepted Answer

The cost of shipping the goods a firm produces is a variable cost because it varies with the level of production and sales. The more goods produced and sold, the higher the shipping costs, making it directly variable with the firm's output.

An Example of a Variable Cost to the Firm Is