Variable Cost Is

question 110

Multiple Choice

Variable cost is

• A) the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.
• B) the sum of the expenses of the firm that change with the quantity of a product that is produced and sold.
• C) the total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and marginal cost.
• D) the average amount of money received for selling one unit of a product or simply the price of that unit.
• E) the change in total cost that results from producing and marketing one additional unit of a product.

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Definitions:

Excise Tax

A specific tax levied on the sale of a particular good or service, often included in the price of items such as tobacco or alcohol.

Tax Rate

The percentage at which income or property is taxed by a government.

Pretax Equilibrium

The market equilibrium that occurs before any taxes are applied to goods or services, reflecting the balance between supply and demand without tax-induced price distortions.

Employment-At-Will Doctrine

The employment-at-will doctrine is a legal principle that allows either the employer or the employee to terminate employment at any time without having to provide a reason, barring illegal discrimination.