Total Variable Cost ________ as Output Increases, and Total Fixed

question 231

Multiple Choice

Total variable cost ________ as output increases, and total fixed cost ________ as output increases.

• A) increases; increases
• B) increases; decreases
• C) increases; does not change
• D) does not change; does not change

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Definitions:

International Firm

A company that conducts its operations and business activities in more than one country.

Economic Conditions

The state of the economy at a given time, influenced by factors such as GDP growth rates, unemployment levels, and inflation rates.

Short-Run Exposure

The risk faced by companies due to fluctuations in exchange rates that can affect their transactions and finances in the near term.

Translation Exposure

The risk that a company's financial statements can be affected by changes in exchange rates when they have operations in foreign currencies.