Asked by ed thelson Lacombe on Apr 28, 2024
Verified
Which type of cost does depend on a firm's output?
A) variable cost
B) total cost
C) marginal cost
D) all of the above
Variable Cost
Costs that change in proportion to the level of activity or volume of goods produced in a business.
Marginal Cost
The increase in cost that arises from producing one additional unit of a good or service.
- Understand the concepts of fixed, variable, and total costs.
- Distinguish between fixed and variable costs and understand their behavior as output changes.
Verified Answer
IT
Ismael TorresApr 30, 2024
Final Answer :
D
Explanation :
Variable cost, total cost, and marginal cost all depend on a firm's output. Variable costs change with the level of output, total cost includes both fixed and variable costs and thus changes as output changes, and marginal cost is the cost of producing one more unit of a good, which also varies with the level of production.
Learning Objectives
- Understand the concepts of fixed, variable, and total costs.
- Distinguish between fixed and variable costs and understand their behavior as output changes.