Which of the Following Statements Is True

question 299

Multiple Choice

Which of the following statements is true?

• A) The total variable cost curve decreases as output increases.
• B) The total variable cost curve shows the variable costs of production given current factor prices.
• C) Total variable cost is always greater than total fixed cost.
• D) Total variable cost is inversely related to output.

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Definitions:

Year of Sale

The specific calendar year in which a sale transaction of goods, services, or assets is completed.

Credit Terms

The conditions under which credit will be extended to a customer, including payment deadlines and discounts for early payment.

Invoice Price

The price listed on an invoice for purchased goods or services, before any discounts, allowances, or additional charges are applied.

Net Realizable Value

Net Realizable Value is the estimated selling price of goods minus the estimated cost of completion and sales expenses.