When Other Factors Remain Constant, an Increase in Variable Costs

question 43

Multiple Choice

When other factors remain constant, an increase in variable costs:

• A) Increases the number of units needed to earn profits
• B) Decreases the number of units needed to earn profits
• C) Has no effect on the number of units needed to earn profits
• D) Decreases the number of units needed to break even

---

Definitions:

Problem Solving

The process of identifying solutions to specific issues by applying appropriate techniques or knowledge.

Behavioural Activation

A therapy technique focused on helping individuals improve their mood by increasing their engagement in positively reinforcing activities.

Response Shaping

A process of shaping behaviour by gradual approximations of what is expected. For example, a child who is intellectual disability and may be unable to get dressed independently can be taught the process gradually by being rewarded for putting on one item at a time until he or she is eventually able to handle the entire task.

Exposure

A therapeutic technique used in behavioral therapy to treat anxiety disorders that involves the exposure to the feared object or context without any danger in order to overcome their anxiety.