Variable Costs

question 84

Multiple Choice

Variable costs:

• A) Do not vary in total within the relevant range
• B) Do not vary on a per-unit basis within the relevant range
• C) Vary on a per-unit basis within the relevant range
• D) Both (a) and (c)

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Definitions:

Total Utility

The complete satisfaction or utility gained by consuming a certain amount or number of goods or services.

Beers

An alcoholic beverage typically made from water, malted barley, hops, and yeast.

Day

A period of 24 hours as a unit of time, representing the time taken by the Earth to complete one rotation with respect to the sun.

Utility

Refers to the total satisfaction received from consuming a good or service.