A Variable Cost Remains Constant on a Per-Unit Basis as Production

question 114

True/False

A variable cost remains constant on a per-unit basis as production increases.

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Definitions:

Computer Software

Programs and operating information used by a computer to perform specific tasks.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, illustrating how fixed costs dilute over larger quantities of output.

Total Cost

The total expense incurred in the production of goods or services, including both fixed and variable costs.

Computer Software

Software and data that enable a computer to execute particular tasks.