Variable Cost Is The

question 15

Multiple Choice

Variable cost is the:

• A)total expense incurred by a firm in producing and marketing a product or service.
• B)sum of the expenses of the firm that are stable and do not change with the quantity of the product that is produced and sold.
• C)money or other considerations (including other goods and services) exchanged for the ownership or use of a good or service.
• D)sum of the expenses of the firm that vary directly with the quantity of the product that is produced and sol

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Definitions:

Output Increase

The rise in the quantity of goods or services produced by a company or economy over a certain period.

Long-run Cost Structure

The pattern of costs that a firm faces over a long period when it is free to adjust all of its input levels, including investment in new plant and equipment.

Competitive Industry

An industry characterized by many firms offering similar or slightly differentiated products, leading to a high degree of competition and typically lower prices.