Which of the Following Is an Example of a Variable

question 33

Multiple Choice

Which of the following is an example of a variable cost for a manufacturing firm?

• A)The cost of rent on the factory.
• B)The cost of factory supervision.
• C)The cost of raw materials.
• D)The cost of depreciation on equipment.

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Definitions:

Maximum Quantity

The highest amount of a product or service that can be produced or offered under given circumstances.

Price of X

The amount of money required to purchase a unit of product X, often influenced by supply and demand dynamics.

Consumer's Income

The total amount of income or earnings available to a consumer for spending and saving after taxes are paid.

Budget Line

A graphical representation showing all possible combinations of two goods that can be purchased with a given budget at fixed prices.