[amp_mcq option1=”increases” option2=”does not increase” option3=”decreases” option4=”None of these” correct=”option1″]<\/p>\n
The correct answer is A. increases.<\/p>\n
Variable costs are costs that change in proportion to the amount of goods or services produced. For example, the cost of raw materials is a variable cost, because the more goods you produce, the more raw materials you will need.<\/p>\n
The total variable cost is the sum of all the variable costs incurred in producing a given level of output. As output increases, the total variable cost will also increase. This is because the more goods you produce, the more raw materials, labor, and other variable costs you will incur.<\/p>\n
The following is a brief explanation of each option:<\/p>\n
[amp_mcq option1=”increases” option2=”does not increase” option3=”decreases” option4=”None of these” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-57769","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n