A cost of production that is positively related to output is the?

A. total fixed cost
B. average fixed cost
C. variable cost
D. social cost

Correct Answer:

Option C = variable cost

Explanation

Variable cost has a positive relationship with output in such a way that if a firm produces more output, the variable cost will be greater, and if a firm produces no output, then the variable cost will be zero. The variable cost depends on the level of output.