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Which of the following corresponds to the variable cost per unit of output?

1) Slope parameter
2) Dependent variable
3) Intercept parameter
4) Independent variable

1 Answer

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Final answer:

The variable cost per unit corresponds to the slope parameter, which in a cost function is the rate of change of total cost with respect to output quantity.

Step-by-step explanation:

The variable cost per unit of output corresponds to slope parameter of the linear equation that represents the cost function in economic terms. In a cost model equation, the slope signifies the change in total cost resulting from a one-unit change in the quantity of output produced, which in this context, is the variable cost per unit.

This can be represented by the equation y = vx + f, where y is the total cost, v represents variable cost per unit (slope), x is the number of units produced (independent variable), and f is the fixed cost (intercept parameter).

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