Elke and Geoffrey Are New Parents

question 170

Multiple Choice

Elke and Geoffrey are new parents. If they are like MOST couples, their marital happiness _____ after this life change.

• A) will stay the same
• B) will increase
• C) will decrease
• D) cannot be accurately predicted

---

Definitions:

Total Variable

Expenses that change in proportion to the activity of a business, such as costs of goods sold, which vary with the level of production or sales volume.

Average Variable Cost

The variable costs of production (costs that change with output level) divided by the quantity of output, indicating the average variable cost per unit.

Producing Purses

Producing purses involves the manufacturing and assembling of various materials to create handbags and similar accessories.

Average Fixed Cost

The sum of all production fixed costs divided by the number of units produced.