The cost of raw materials used to produce a good or service represent the firm's costs.

The correct answer is ''variable''.

The cost of raw materials used to produce a good or service represent the firm's variable costs.

Explanation:

The variable cost is the name given, in the field of economics, to the term that refers to the costs of a company that depends on the level of production that is being produced. It refers to the variaton of the cost when it varies the production, therefore if there is no production then there are no variable costs. Moreover, this type of costs equals the sum of marginal costs over all units produced.

On the other hand, in the case asked, the variable cost of the firm will depend on how much they will produce and therefore that the cost of those raw materials would not always be the same, those costs will change with the production.

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