Question

______________ include all of the costs of production that increase with the quantity produced.

A. Fixed costs
B. Variable costs
C. Average costs
D. Average variable costs

Answer 1

B. Variable costs

Step-by-step explanation:

Variable costs are those costs that vary with the volume of production, such as raw materials, wages for production workers, and energy. Fixed costs, on the other hand, are costs that do not vary with the volume of production, such as rent, insurance, and property taxes. Average costs and average variable costs are measures of the total costs or variable costs per unit of output.