Glossary · Micro · Production and costs

Variable cost (VC)

A cost that rises with output, like materials and hourly wages. It is zero when the firm produces nothing.

Also called: VC, total variable cost, TVC

Taught in: Fixed, Variable, and Total Cost

Related terms

Fixed cost (FC)Total cost (TC)Average variable cost (AVC)

More from production and costs

Average fixed cost (AFC)Average product of labor (APL)Average total cost (ATC)Cobb-Douglas production functionEconomies and diseconomies of scaleIsoquant

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