Which of the Following Statements Is True About Variable Costs

question 42

Multiple Choice

Which of the following statements is true about variable costs?

• A)The corporate jet expenditure is an example of a variable cost.
• B)These costs must be recovered by the price.
• C)The marketing manager's salary is an example of a variable cost.
• D)These costs are independent of sales volume.

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Definitions:

Marginal Expenditure Curve

A graphical representation that shows the change in total expenditure incurred by purchasing one additional unit of a good or service.

Economic Rent

Amount that firms are willing to pay for an input less the minimum amount necessary to obtain it.

Factor Of Production

Resources used in the creation of goods and services, typically categorized into land, labor, capital, and sometimes entrepreneurship.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied.