In General,if the Price of a Variable Factor of Production

question 46

Multiple Choice

In general,if the price of a variable factor of production increases:

• A)total costs fall.
• B)the profit maximizing level of output rises.
• C)price rises.
• D)marginal costs rise.

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Definitions:

Sales Department

The division within a business focused on sales and customer acquisition strategies.

Step-Down Method

An accounting method used to allocate service department costs to producing departments in a sequential manner, based on a hierarchy of services provided.

Support Department

Units within an organization that provide essential services or assistance to the main production or operation departments but do not directly produce revenue.

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as products, departments, or projects.