Question

 

State the difference between variable cost and fixed cost. Explain the reasons for U shaped short run average cost curve.

18 Jul 2025
Answer :
Word Count : 236
Variable cost refers to the costs that change directly with the level of output produced. Examples include raw materials, direct labor, and utility costs related to production. As production increases, variable costs rise; if production falls to zero, variable costs also become zero. Fixed cost, on the other hand, remains constant irrespective of the level of output. These are _________ _____ _______ ____ ______ __________.
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