Which of the Following Observations Is True

question 168

Multiple Choice

Which of the following observations is true?

• A)TFC remains the same irrespective of units of output produced.
• B)TVC remains the same irrespective of units of output produced.
• C)TVC falls as the unit of output increases.
• D)AFC increases as output increases further and further.

---

Definitions:

Board of Directors

Members selected by the corporation's shareholders to govern and decide on important matters concerning the company's administration.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, managing overall operations, and acting as the main point of communication between the board of directors and corporate operations.

Corporation

A legal entity that is separate and distinct from its owners, capable of conducting business, owning property, and being liable for legal actions.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, making them the owners of the corporation to the extent of the shares they hold.