choose the correct option:
the costs which do change with change in the quantity of output is called
1) supplementary cost
2) money cost
3) real cost
4) none of these
Aman, Samira is right. The correct answer to this question is real costs. This is because real costs imply the payments made to the factors of production compensating them in exchange of their efforts and discomforts. So, as more and more units of output is produced, higher and higher real costs are incurred.