Which Statement Is False

question 100

Multiple Choice

Which statement is false?

• A)The AFC curve is U-shaped.
• B)The AVC curve is U-shaped.
• C)The ATC curve is U-shaped.
• D)None of these statements are false.

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Definitions:

Fixed Expenses

Costs that do not vary with changes in production volume or sales, such as rent, salaries, and insurance.

Profit

The financial gain realized when the revenue generated from a business activity exceeds the costs, expenses, and taxes needed to sustain the activity.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that remains after variable costs are subtracted.

Fixed Monthly Expenses

Recurring costs that do not vary in total within a given period, such as rent, salaries, and insurance premiums, irrespective of the level of business activity.