Which of the Following Statements Is TRUE About Fixed and Variable

question 173

Multiple Choice

Which of the following statements is TRUE about fixed and variable costs?

• A)Variable costs are constant in total and fixed costs are constant per unit.
• B)Both costs are constant when considered on a total basis.
• C)Both costs are constant when considered on a per-unit basis.
• D)Fixed costs are constant in total and variable costs are constant per unit.

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Definitions:

Long-run Equilibrium

A state in an economy or market where all factors, including prices, supply, and demand, are fully adjusted and stable over time.

Perfectly Competitive

A theoretical market structure characterized by an infinite number of buyers and sellers, identical products, and no barriers to entry or exit.

Price Equals

A statement used to define a condition where the price of a good or service is set or found.

Efficient Markets

A theory that suggests that financial markets fully reflect all available information at any given time, making it impossible to consistently achieve higher returns.