Question

Which of the following is a variable cost in the short run?

a) Rent payment to suppliers
b) Property tax
c) Insurance premium
d) Fixed overhead costs

Answer 1

Variable costs in the short run change with the level of production.

Step-by-step explanation:

In the short run, a variable cost is a cost that changes with the level of production. It is incurred in the act of producing and varies depending on the quantity produced. One example of a variable cost is the cost of raw materials used to manufacture a product. As production increases, the cost of raw materials will also increase.