Which of the following represents the equation for total variable costs?
A)y = vx + f
B)y = vx
C)y = vx - f
D)y = v

Question

Quizplus · Accepted Answer

The equation for total variable costs is y = vx, where v represents the variable cost per unit and x represents the number of units produced. This equation shows that total variable costs increase in direct proportion to the number of units produced, as each unit incurs the same variable cost. The options A, C, and D include fixed costs or do not include an x variable, and therefore do not correctly represent the equation for total variable costs.

Which of the Following Represents the Equation for Total Variable