Select the Correct Statement Regarding Fixed Costs

question 7

Multiple Choice

Select the correct statement regarding fixed costs.

• A) Because they do not change, fixed costs should be ignored in decision making.
• B) The fixed cost per unit decreases when volume increases.
• C) The fixed cost per unit increases when volume increases.
• D) The fixed cost per unit does not change when volume decreases.

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Definitions:

Bricklayers

Skilled tradespeople who lay bricks to construct brickwork, an essential component in building structures from walls to pathways.

Equilibrium Market Wage Rate

The wage rate at which the quantity of labor firms wish to employ equals the quantity of labor workers wish to supply.

Quantity Demanded

The overall volume of a commodity or service that is desired and can be bought by consumers at a specific price point.

Market Wage Rate

This is the prevailing rate of pay for workers in a particular job or industry, determined by the supply of and demand for labor.