If Production Volume Increases from 8,000 to 10,000 Units

question 2

Multiple Choice

If production volume increases from 8,000 to 10,000 units,

• A)total costs will increase by 20 per cent.
• B)total costs will increase by 25 per cent.
• C)total variable costs will increase by 25 per cent.
• D)mixed and variable costs will increase by 25 per cent.

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Definitions:

Oil Imports

The purchase of crude oil or petroleum products from foreign countries, which is a significant factor for economies dependent on outside sources for their energy needs.

Domestic Price

The price of goods or services within a country's domestic market, as opposed to international or foreign markets.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.).

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or other restrictions.