Which Statement Is False

question 9

Multiple Choice

Which statement is false?

• A)Total cost rises with output because variable cost rises.
• B)A firm will operate when prospective sales are greater than variable cost.
• C)When output falls,variable costs fall.
• D)None of the statements are false.

Understand the fundamental principles of marketing and its utilities.

Recognize the importance of combining different strategies for marketing success.

Comprehend the process of marketing from discovering customer needs to targeting markets.

Distinguish between consumer and business products and their categories.

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Definitions:

Average Variable Cost

The total variable costs of production divided by the number of units produced, indicating the variable cost per unit.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm or production process scales up, contrary to economies of scale where costs decrease.

Boeing

An American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide.