Which of the Following Describes the Behavior of the Fixed

question 140

Multiple Choice

Which of the following describes the behavior of the fixed cost per unit?

• A) decreases with increasing production
• B) decreases with decreasing production
• C) remains constant with changes in production
• D) increases with increasing production

---

Definitions:

Random Variable

A variable whose numerical values result from a random phenomenon or statistical experiment.

Constant

In mathematics and statistics, a fixed value that does not change within the scope of a given problem.

Interval

A range between two numbers or points, often used to specify a period of time or a statistical range.

Standard Normal Distribution

A specific probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.