Question

the production increases when the output of variable cost is​

Answer 1

Key Takeaways. A variable cost is a corporate expense that changes in proportion with production output. When production increases, variable costs increase; when production decreases, variable costs decrease.

As the level of output increases, the difference between the value of average total cost and average variable cost... 1. decreases because average fixed cost decreases as output increases. ... increases because average total cost increases with output but average fixed cost decreases with output.

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