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Define and know how to calculate variable costs.

Question:

Define and know how to calculate variable costs.

Short Run Cost Vs Long Run Cost:

In the short run, the firm uses both fixed factors production as well as variable factors of production. In the long run, all factors of production become variable factors. Hence, the short-run comprises fixed as well as the variable cost while in the long run, all production cost is a variable cost.

Answer and Explanation: 1

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Variable cost is the cost that changes with the level of the output produced. Variable cost increases and decreases when the firm increases or...

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Short-Run Costs vs. Long-Run Costs in Economics

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Chapter 4 / Lesson 12
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Learn about short run vs. long run economics. Examine the definitions of short run and long run economics, and study examples of short and long run costs.


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