Test for Relative Maximum and Minimum

question 66

Multiple Choice

Test for relative maximum and minimum. ​ ​

• A)relative maximum at
• B)saddle point at
• C)relative maximum at
• D)relative minimum at
• E)saddle point at

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Definitions:

Variable Cost

Costs that vary directly with the level of production or with the volume of services provided.

Fixed Costs

Constant expenses, such as rent, salaries, and insurance, that are not influenced by the quantity of production or sales.

Fixed Costs

Fixed costs are business expenses that remain unchanged regardless of the level of production or sales activity, such as rent, salaries, and insurance.

Unit Variable Costs

The costs that vary directly with the production volume, per unit of output.