Which of the Following Statements Is Correct

question 120

Multiple Choice

Which of the following statements is correct?

• A) As output increases, total cost and total fixed cost increase by the same amount.
• B) As output increases, total cost and total fixed cost increase but not necessarily by the same amount.
• C) As output increases, total cost increases and total fixed cost decreases.
• D) Total fixed cost plus total variable cost equals total cost.

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Definitions:

Theft

In criminal law, knowingly taking or obtaining control over the property of another without consent, using deceit, threats, or coercion.

Binder

An oral or a written memorandum of an agreement for insurance intended to provide temporary insurance coverage until the policy is formally accepted.

Insurance Coverage

The protection provided by an insurance policy against financial loss or damage, specifying what types of loss are compensated.

Adhesion Contract

A contract drawn by one party that must be accepted on a take-it-or-leave-it basis.