A cost of production that is positively related to output is the
ECONOMICS
WAEC 2019
A cost of production that is positively related to output is the
- A. total fixed cost
- B. average fioxed cost
- C. variable cost
- D. social cost
Correct Answer: C. variable cost
Explanation
Variable cost has a positive relationship with output in such a way that if a firm produces more output, the variable cost will be greater, and if a firm produces no output, then the variable cost will be zero. The variable cost depends on the level of output.
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