In the formula, Total cost = Fixed cost + (Variable rate x Output), variable cost refers to the
A) slope parameter or b
B) intercept parameter or a
C) dependent variable
D) independent variable

Question

Quizplus · Accepted Answer

Variable cost in the given formula is represented by the variable rate, which is multiplied by the output to calculate the total variable cost. This rate acts as the slope parameter (or b) in a linear equation, where it determines the change in total cost with respect to a change in output.

In the Formula, Total Cost = Fixed Cost + (Variable