Which of the Following Statements Is True of the Behavior

question 229

Multiple Choice

Which of the following statements is true of the behavior of total fixed costs,within the relevant range?

• A) They will remain the same as production levels change.
• B) They will increase as production decreases.
• C) They will decrease as production decreases.
• D) They will decrease as production increases.

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Definitions:

Sales

The exchange of goods or services for money; in a business context, it refers to the transactions leading to revenue.

Profits

Financial gains realized when the revenue earned from business activities exceeds the expenses, costs, and taxes involved in sustaining the activities.

Intercept

In the context of linear regression, this represents the expected value of the dependent variable when all independent variables are zero; it is the point at which the regression line crosses the y-axis.

Least-squares Regression Line

The least-squares regression line minimizes the squared differences between observed and predicted values, providing the best fit line through data points.