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

Name: 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
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Question

Quizplus · Accepted Answer

Total variable costs will increase in direct proportion to the increase in production. So, if production increases by 15%, variable costs are also expected to increase by 15%.

If Production Increases by 15%, How Will Total Variable Costs