Which of the following is an equation of a variable cost function?
A)Y = ax + bx
B)Y = a + bx
C)Y = b
D)Y = a
E)Y = bx

Question

Quizplus · Accepted Answer

A variable cost function is one where the cost changes based on the level of production or output. The equation Y = bx represents a variable cost function where Y is the total cost, b is the variable cost per unit, and x is the number of units produced or sold. This equation shows that the total cost increases in proportion to the number of units produced or sold, which is the defining characteristic of a variable cost.

Which of the Following Is an Equation of a Variable