Answer to Question #252764 in Microeconomics for Adeel

Question

Variable costs are

Answer 1

Solution:

Variable costs are a company's costs that are associated with the number of goods or services it produces. Variable costs fluctuate in relation to a company's production volume. Variable costs will rise as production volume increases. However, if the volume decreases, so will the variable costs.

Examples of variable costs include raw materials, labor, commissions, shipping costs, and utility expenses.