Question

With which factors are variable costs related in the economy?

Answer 1

Answer:

Variable cost (VC) changes according to the quantity of a good or service being produced. It includes inputs like labor and raw materials. Variable costs are also the sum of marginal costs over all of the units produced (referred to as normal costs)..

Answer 2

The production of output is the factor by which variable costs are related to the economy.

What is the impact of variable cost on production?

• Variable costs are increased when the production is increased and decreases when production is decreased
• Variable cost gets changed when production of output change
• The variable cost is always constant with per unit amount produced
• It is directly related to the production of any product
• It is affected by the increase or decrease in sales and production levels