Question
upstudy study bank question image url

\begin{tabular}{l} A variable cost is one that changes \\ in the long run only \\ in the short run only \\ year to year \\ month to month \\ \hline as output changes \end{tabular}

Ask by Barrett Rowe. in the United States
Mar 14,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

Variable costs change as output changes.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Answered by UpStudy AI and reviewed by a Professional Tutor

The Deep Dive

Variable costs are like the dance partners of a business's financial waltz; they groove and sway as production levels rise and fall! For instance, if a bakery produces more cakes, the cost of flour, sugar, and eggs increases proportionally. So, the more you bake, the higher those ingredient costs become, reflecting the direct relationship between output and expenses. Imagine you're a chef in a bustling restaurant. When you decide to serve more dishes, your costs for fresh produce and meat will spike, while low output days mean your variable costs drop. Understanding this rhythm is key to keeping your finances balanced and preparing for the highs and lows of business demands!

Related Questions

Latest Economics Questions

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy