If production increases by 15%,how will total variable costs likely react?
A)Increase by 7.5%
B)Increase by 15%
C)Decrease by 15%
D)Remain the same

Question

Quizplus · Accepted Answer

Total variable costs will likely increase by the same percentage as the increase in production, which is 15%. This is because variable costs are directly proportional to the level of production, meaning that as production increases, variable costs also increase at the same rate. Therefore, choice B, increase by 15%, is the best option.

If Production Increases by 15%,how Will Total Variable Costs Likely