Which Type of Cost Has an Increasing Total Expense and a Constant

question 9

Multiple Choice

Which type of cost has an increasing total expense and a constant average expense as output increases?

• A) Fixed cost
• B) Variable cost
• C) Step cost
• D) Variable cost with fixed component

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Definitions:

Collectivism

A cultural value that emphasizes the importance of the group or community over individual achievements or desires.

Individualism

A social and political philosophy that emphasizes the moral worth of the individual over collective or state interests.

Capitalist Economic System

An economic system where private individuals or businesses own capital goods and the production of goods and services is based on supply and demand in the market.

Social Norms

Unwritten rules and expectations for behavior within a society or group, guiding individual actions and interactions.