No, it's wrong. Say eg Costs vary not only with the volume of the output and to varying degrees from one industry to another, but also according to the extent to which existing capacity is being used. or eg Costs vary with the volume of the output, to varying degrees from one industry to another, and according to the extent to which existing capacity is being used.
New words, one handy idiom, and a 2-minute quiz — delivered to your inbox to keep your streak alive.