________ is a cost that changes with the quantity produced by the firm and is incurred by the firm in the short run.
A) Fixed cost
B) Economic cost
C) Variable cost
D) Average total cost

Question

Quizplus · Accepted Answer

Variable cost is a cost that changes with the quantity produced by the firm in the short run. It includes costs such as labor and materials, which are directly related to the level of production. Fixed cost, on the other hand, is a cost that remains constant regardless of the level of production, such as rent or insurance. Economic cost includes both explicit costs (such as wages and rent) and implicit costs (such as the opportunity cost of using resources). Average total cost is the total cost divided by the quantity produced and includes both variable and fixed costs.

________ Is a Cost That Changes with the Quantity Produced