Which of the Following Best Describes a Fixed Cost

question 10

Multiple Choice

Which of the following best describes a fixed cost?

• A)It may change in total when such change is unrelated to changes in production volume.
• B)It may change in total when such change is related to changes in production volume.
• C)It is constant per unit of change in production volume.
• D)It may change in total when such change depends on production volume within the relevant range.

---

Definitions:

Internal Validity

The characteristic of a study that allows us to conclude that the manipulation of the independent variable caused the observed changes in the dependent variable.

Independent Variable

The variable in an experiment that is manipulated by the researcher to examine its impact on the dependent variable.

Dependent Variable

In research, the variable being tested and measured, expected to change as a result of manipulations to the independent variable.

Between-subject

A research design where different subjects are assigned to distinct groups, with each group experiencing a different condition or treatment.