Which of the Following Statements Is (Are) TRUE

question 124

Multiple Choice

Which of the following statements is (are) TRUE?
I. MC = ΔTC/ΔQ
II. MC = ΔVC/ΔQ
III. Marginal cost falls as returns to labor begin to diminish.

• A) I, II, and III
• B) I and II
• C) II and III
• D) I and III

---

Definitions:

Western Division

Typically refers to a geographic or organizational segment of a company located in the western region or sector it operates in.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance.

Break-even Sales

The amount of revenue required to cover total costs, both fixed and variable, with no profit or loss.

Fixed Expenses

Fixed costs, encompassing rent, salaries, and insurance, that are unaffected by changes in production or sales activity.