As the Values for One Variable Increase from One Person

question 20

Multiple Choice

As the values for one variable increase from one person to another, the values for a second variable tend to decrease. This is an example of a(n) ____ relationship.

• A) positive
• B) negative
• C) curvilinear
• D) inconsistent

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Definitions:

Average Variable Cost

The total variable costs (costs that change with production levels) divided by the quantity of output produced.

Output

The total amount of goods or services produced by a firm, industry, or economy in a given period, often used as an indicator of productivity and economic health.

Variable Cost

Costs that change in proportion to the level of output or activity in a company’s production or operations.

Average Variable Cost

The total variable cost per unit of output, which varies with the level of production.