Which of the Following Statements Is Correct

question 60

Multiple Choice

Which of the following statements is correct?

• A) Total fixed cost plus total variable cost equals total cost.
• B) As output increases, total cost and total fixed cost increase by the same amount.
• C) As output increases, total cost and total fixed cost increase but not necessarily by the same amount.
• D) As output increases, total cost increases and total fixed cost decreases.

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Definitions:

Equilibrium Interest Rate

The interest rate at which the demand for funds equals the supply of funds, balancing savings and investments.

R&D Spending

Expenditures on research and development to innovate and improve products or processes.

Equilibrium Interest Rate

The interest rate at which the quantity of money demanded equals the quantity of money supplied.

Nominal Interest Rate

The rate of interest before adjustments for inflation, representing the face value of interest payments.