As Output Increases, Total Variable Cost

question 125

Multiple Choice

As output increases, total variable cost

• A)increases more rapidly than does total cost.
• B)increases continuously at a decreasing rate.
• C)increases at a decreasing rate and then at an increasing rate.
• D)increases at a constant rate.

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Definitions:

Preference Decision

A decision in which the acceptable alternatives must be ranked.

Minimum Required

The least amount that must be maintained or achieved in a specific scenario, such as a bank balance or stock level.

Screening Decision

A decision as to whether a proposed investment project is acceptable.

Internal Rate

Often referred to as the internal rate of return (IRR), it is a rate of return used in capital budgeting to measure and compare the profitability of investments.