Porterhouse Company Has Both Fixed and Variable Production Costs

question 51

Multiple Choice

Porterhouse Company has both fixed and variable production costs. If volume goes up by 20%, how would that affect the total fixed costs? (Assume all volumes are within the relevant range.)

• A) Would go up 20%
• B) Would remain the same
• C) Would go up by some amount less than 20%
• D) Would go down

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Definitions:

Gross Primary Productivity

The total amount of solar energy that photosynthetic organisms capture and convert to organic compounds in a given area over a certain period.

Nitrogen Cycle

The worldwide circulation of nitrogen from the abiotic environment into living things and back into the abiotic environment.

Carbon Cycle

The worldwide circulation of carbon from the abiotic environment into living things and back into the abiotic environment.

Photosynthetic Organisms

Organisms capable of photosynthesis, a process that converts light energy into chemical energy, typically involving the production of oxygen from carbon dioxide.