Which of the Following Is True About the Changes in Fixed

question 20

Multiple Choice

Which of the following is true about the changes in fixed cost?

• A) An increase in production will result in an increase in per unit fixed cost.
• B) A decrease in fixed cost will result in an increase in variable cost.
• C) An increase in production will result in a decrease in per unit fixed cost.
• D) A decrease in production will result in an increase in total fixed cost.

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Definitions:

Contrast Effects

The enhancement or reduction in perception and judgement of stimuli when compared to a recently encountered contrasting stimulus.

Absolute Thresholds

The minimum intensity of a stimulus that one can detect 50% of the time, varying between individuals and conditions.

Sensory Adaptation

How sensory receptors gradually become less perceptive to continuous stimuli as time passes.

Prices

The amount of money required to purchase goods or services, often determined by factors such as supply and demand.