All of the Following Statements About Variable Costs Are True

question 209

Multiple Choice

All of the following statements about variable costs are true except

• A) they are equal to total costs in the long run.
• B) they are zero if output is zero.
• C) they are equal to the product of average variable cost and the output level.
• D) they are constant as output increases.

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Definitions:

Law of Heredity

Describes the principles guiding how traits are passed from parents to offspring, traditionally referenced in the context of genetics and biological inheritance.

Uniformitarianism

The geological principle suggesting that the same processes and natural laws that operate in the universe now have always operated in the past.

Natural Selection

A fundamental mechanism of evolution, where organisms better adapted to their environment tend to survive and produce more offspring.

Catastrophism

The theory that the Earth has been shaped by sudden, short-lived, violent events, possibly worldwide in scope, contrasting with uniformitarianism which emphasizes gradual changes.