When graphed, a typical variable cost appears as:
A) a horizontal line.
B) a vertical line.
C) a u-shaped line.
D) a diagonal line that slopes downward to the right.
E) a diagonal line that slopes upward to the right.

Question

Quizplus · Accepted Answer

Variable costs change with the level of output, increasing as production increases and decreasing as production decreases. This relationship is typically represented by a diagonal line that slopes upward to the right on a graph, where the horizontal axis represents the quantity of output and the vertical axis represents the cost.

When Graphed, a Typical Variable Cost Appears As