Separating a Market by the Amount of the Product Consumed

question 8

True/False

Separating a market by the amount of the product consumed is known as volume segmentation.

---

Definitions:

Total Variable Cost

The sum of all variable expenses associated with producing a particular level of output.

Total Fixed Cost

An expenditure that does not change with the level of production or sales over a short period.

Average Variable Costs

The costs of labor, material, and other inputs that change with the level of production or sales volume.

Average Fixed Costs

The sum of all fixed production costs divided by the number of units produced.