Answer :

Final answer:

Variable costs change with a company's performance, impacting total costs and long-term goals.


Explanation:

Variable costs are costs that change based on a company's performance. They include expenses like labor and raw materials which increase or decrease with the level of production. Managing variable costs effectively in the short run can impact long-run costs and goals.

Returns to scale in economics refer to what happens when the scale of production increases over time with all inputs being variable, impacting a firm's costs and goals.

Total variable costs rise as output increases, as firms require more inputs to produce a greater output, influencing the overall variable costs.


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