Within the Relevant Range, the Variable Cost Per Unit

question 174

Multiple Choice

Within the relevant range, the variable cost per unit

• A) differs at each activity level.
• B) remains constant at each activity level.
• C) increases as production increases.
• D) decreases as production increases.

---

Definitions:

Utility Function

A mathematical representation of a consumer's preference, showing the level of satisfaction or utility derived from different bundles of goods and services.

Indifference Curve

A curve that shows the different bundles of goods between which a consumer is indifferent, highlighting the trade-offs a consumer is willing to make.

Apples

A popular fruit with a sweet to tart taste, grown in temperate climates and consumed fresh, cooked, or as juice.

Bananas

A type of elongated, edible fruit with soft flesh and a yellow peel when ripe, primarily grown in tropical regions.