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.

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Definitions:

Combinations

Various ways in which objects, numbers, or selections can be combined or arranged.

Corners

Points where two or more edges or surfaces meet, often used metaphorically to denote an aspect or part of something less explored or known.

Objective Function

A mathematical function used in optimization to define the goal of the decision-making process, such as maximizing profit or minimizing cost.

Products

Products are goods or services offered by a business to satisfy consumer needs or wants.