What Type of Cost Exhibits the Behaviour That Follows A)Variable Cost

question 57

Multiple Choice

What type of cost exhibits the behaviour that follows? $\begin{array} { | c | c | } \hline \begin{array} { c } \text { Manufacturing } \\\text { Volume } \\\text { (Units) }\end{array} & \text { Cost Per Unit } \\\hline 50.000 & \$ 1.95 \\\hline 70.000 & 1.95 \\\hline\end{array}$

• A)Variable cost.
• B)Fixed cost.
• C)Curvilinear cost.
• D)Discretionary fixed cost.
• E)Step-fixed cost.

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Definitions:

Monopolistic Competition

A commercial structure with several businesses marketing similar yet distinct products, which gives them a bit of power within the market.

Negative Economic Profits

Occurs when a firm's total costs exceed its total revenues, resulting in a loss.

Optimal Level

In economics, the optimal level refers to the most efficient, effective, or desirable point of operation or outcome in terms of maximizing benefits or minimizing costs.

Short Run

The Short Run is a period during which at least one factor of production is considered fixed in supply, limiting the ability of a business to alter its output levels.