The production cost that varies inversely with output is the
Answer Details
The production cost that varies inversely with output is the "average cost".
In economics, the "average cost" is the total cost of production divided by the quantity of output. It includes both fixed costs (which remain constant regardless of output) and variable costs (which increase with output).
When the output increases, the average cost decreases because the fixed cost is spread over a larger quantity of output. Therefore, the average cost is said to vary inversely with output.