If the Activity Level Decreases, What Happens to the Unit

question 2

Multiple Choice

If the activity level decreases, what happens to the unit fixed cost?

• A)It decreases.
• B)It increases.
• C)It remains the same.
• D)It depends on how much the activity level increases.

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Definitions:

Social Contagion Theory

A social psychological theory that explains how behaviors, attitudes, and emotions can spread through populations as if they were infectious diseases.

Social Identity Theory

A theory that posits individuals derive part of their self-image and self-esteem from the social groups to which they belong, influencing behaviors and attitudes.

Elaboration Likelihood Model

A theory in social psychology that proposes two routes to persuasion: the central route, which deals with the logical processing of information, and the peripheral route, which involves more superficial processing.

Mere Exposure Effect

A psychological phenomenon where individuals develop a preference for things simply because they are familiar with them.