Question

How do total variable costs behave?A) They decrease as production decreases.B) They remain the same throughout production levels within the relevant range.C) They decrease as production increases.D) They increase as production decreases.

Answer 1

Answer:

A) They decrease as production decreases.

Explanation:

Variable costs depend directly on the number of units the company produces,  so when production increases, they increase and the other way around too.