A Company Observed a Decrease in the Cost Per Unit

question 45

Multiple Choice

A company observed a decrease in the cost per unit. All other things being equal, which of the following is probably true?

• A)The company is studying a variable cost, and total volume has increased.
• B)The company is studying a variable cost, and total volume has decreased.
• C)The company is studying a fixed cost, and total volume has increased.
• D)The company is studying a fixed cost, and total volume has decreased.
• E)The company is studying a fixed cost, and total volume has remained constant.

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Definitions:

Decision Making

The cognitive process of selecting a course of action from multiple alternatives.

Economist

A professional who studies, teaches, or practices economics, the science concerned with the production, distribution, and consumption of goods and services.

Stroop Effect

A phenomenon demonstrating the cognitive interference where the brain's reaction time slows down when it needs to deal with conflicting information.

Color Names

Labels assigned to specific wavelengths of light perceived visually.