Which of the Following Statements Is True of Variable Costs

question 83

Multiple Choice

Which of the following statements is true of variable costs incurred by firms?

• A)These costs are independent of the number of goods produced by firms.
• B)The rent and interest paid by firms are examples of variable costs.
• C)These costs are the difference between what firms charge for their products and the fixed costs of the product.
• D)These costs change directly with the units produced.
• E)These costs refer to the total amount of margin made by a firm.

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Definitions:

Fault Scarp

A fault scarp is a steep incline or cliff formed by the movement of a fault, where one side of the fault has moved vertically with respect to the other.

Columnar Joints

Natural formations of vertically oriented, hexagonal columns of rock, usually found in volcanic basalt, resulting from the cooling and contraction of lava.

Shear Zone

A region of the Earth's crust where rocks have been significantly deformed due to shear stress.

Folded Metamorphic Rocks

Metamorphic rocks that have been subjected to significant pressure and heat, resulting in a folded appearance due to deformation.