Total variable cost of a firm is the cost that the firm incurs to employ its ________.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → variable inputs
Variable inputs, such as raw materials, change with output. The cost of employing them is the total variable cost (TVC).
NCERT (2026-27), Introductory Microeconomics, Glossary: “Total variable cost – The cost that a firm incurs to employ variable inputs is called the total variable cost.” Glossary: “Total fixed cost – The cost that a firm incurs to employ fixed inputs is called the total fixed cost.” |