Which Type of Cost Does Not Change as the Quantity

question 82

Multiple Choice

Which type of cost does not change as the quantity of output produced changes?

• A)average total cost
• B)marginal cost
• C)average fixed cost
• D)total fixed cost
• E)Both C and D are correct.

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Definitions:

Nonconforming Goods

Items delivered under a contract that fail to meet the standards or specifications agreed upon by the contracting parties.

Breach

The violation of a legal obligation, condition, or duty, typically in the context of a contract.

Badly Defective

Refers to products or systems that have significant flaws or defects, severely affecting their performance, safety, or utility.

Installment Series

A sequence of payments or deliveries spread over a period of time as part of a larger agreement.