Which of the Following Quotes Best Illustrates the Idea of Fixed

question 62

Multiple Choice

Which of the following quotes best illustrates the idea of fixed cost?

• A)"As we increase output,per-unit costs rise."
• B)"My primary source of overhead cost is the cost of running the head office."
• C)"If I need to,I can negotiate more overtime with my work force to meet unexpected orders."
• D)"If I double the number of workers and trucks,I get only 80 percent more packages delivered."
• E)"Labour costs are always rising."

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Definitions:

Coefficient Of Correlation

A measure that determines the degree to which two variables' movements are associated, ranging from -1 to 1.

Independent Variable

A variable that is manipulated in an experiment to observe its effect on the dependent variable, without being influenced by other variables.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Least Squares Regression Line

A straight line that minimizes the sum of the squared differences between the observed and theoretical values.