Which of the Following Is Not True of Fixed Costs

question 85

Multiple Choice

Which of the following is not true of fixed costs?

• A)Average fixed costs diminish as output increases.
• B)Fixed costs increase AVC.
• C)Fixed costs are the difference between SAC and AVC.
• D)Fixed costs have no effect on marginal cost.

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Definitions:

Organizational Politics

The application of influence and social connections within an organization to bring about changes that favor either the individual or the organization itself.

Objective Standards

Universal benchmarks or criteria that are not influenced by personal feelings, interpretations, or prejudice.

Manipulating Others

The act of skillfully influencing or controlling others to one's advantage, often in an unfair or deceitful way.

Organizational Politics

Refers to activities within a company that are aimed at improving someone's status or position and are typically at the expense of others.