A cost of production that is positively related to output is the
Answer Details
The cost of production that is positively related to output is variable cost. Variable costs are costs that vary with the level of production, such as the cost of raw materials or labor. As production increases, the cost of these inputs also increases, leading to a positive relationship between output and variable costs.
For example, if a company produces 10 units of a product and incurs a variable cost of $10 per unit, its total variable cost would be $100. If the company increases production to 20 units, the variable cost would be $200, reflecting the positive relationship between output and variable cost.
In contrast, total fixed cost remains constant regardless of the level of production, while average fixed cost decreases as output increases, and social cost refers to the cost to society as a whole, including externalities such as pollution or congestion.