As Production Increases and the Fixed Cost Is Divided by Larger

question 252

Multiple Choice

As production increases and the fixed cost is divided by larger quantities of output, this leads to lower average fixed cost.This is referred to as the effect.

• A)diminishing returns .
• B)spreading
• C)constant cost
• D)increasing returns

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Definitions:

RAD

Rapid Application Development, a software development methodology aimed at providing quick results through iterative cycles and minimal planning.

Prototypes

Preliminary models of products or systems used for testing and validation before full-scale production or development.

RAD

Rapid Application Development is a form of agile software development methodology that prioritizes rapid prototype releases and iterations.

Iterative Process

A method of operation that involves repeating a series of steps to achieve a goal or refine results with each repetition.