Which of the Following Is Not an Assumption When Estimating

question 49

Multiple Choice

Which of the following is not an assumption when estimating a cost function over the relevant range of activity?

• A) Mixed costs will change in total
• B) Mixed costs will change per unit
• C) Variable costs will be constant in total
• D) Fixed costs will be constant in total.

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Definitions:

Workforce

The pool of individuals in a country or company eligible for and engaged in employment, including both employees and those seeking employment.

Discretionary Income

The amount of an individual's income left for spending, investing, or saving after taxes and personal necessities have been paid.

Fiscal Policy

Government policies related to taxation and spending that are used to influence a country's economic conditions.

Private Spending

Expenditures made by individuals, households, and businesses in the private sector, excluding government spending.