Total variable cost:
A) is zero when the quantity produced is zero.
B) is the sum of those changing expenses that are closely related to output.
C) may decrease as the quantity produced is increased.
D) All of the above are true.
E) Both A and B are true.

Question

Quizplus · Accepted Answer

Total variable cost is zero when no output is produced (A), and it is the sum of expenses that vary with output (B). Variable costs do not decrease with increased production, so C is incorrect.

Total Variable Cost