Which of the Following Statements Is Not True

question 49

Multiple Choice

Which of the following statements is not true?

• A)Over the short run, unit variable costs remain constant.
• B)Over the short run, fixed costs decrease as sales volume decreases.
• C)Variable costs are proportional to sales volume.
• D)Contribution margin is calculated by subtracting variable costs from revenue.
• E)None of the above.

Understand the concepts of economies and diseconomies of scale.

Determine the outcomes of changing production scale on average costs.

Recognize the relationship between a firm's operational decisions in the short and long run.

Identify the characteristics of different types of cost curves.

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Definitions:

Physical Pleasure

A type of pleasure or satisfaction derived from sensory or bodily experiences, as opposed to psychological or emotional sources.

Anal Stage

The Anal Stage is the second stage in Freud's psychosexual development theory, occurring from about 18 months to 3 years of age, where the child's focus is on controlling bladder and bowel movements.

Toilet Trained

Refers to when someone, typically a young child, has learned to use the toilet for urination and defecation.

Sexual Feelings

Emotions and physiological responses related to sexual attraction and desire.