Which of the following statements is TRUE of the behavior of total variable costs,within the relevant range?
A) They will decrease as production increases.
B) They will remain the same as production levels change.
C) They will decrease as production decreases.
D) They will increase as production decreases.

Question

Quizplus · Accepted Answer

Total variable costs decrease as production decreases because variable costs vary directly with the level of production. If production goes down, the costs associated with production (like materials and labor) also go down.

Which of the Following Statements Is TRUE of the Behavior