Which of the Following Statements Is TRUE If the Variable

question 23

Multiple Choice

Which of the following statements is TRUE if the variable cost per unit increases while the sale price per unit and total fixed costs remain constant?

• A)Breakeven point in units increases.
• B)Breakeven point in units decreases.
• C)Breakeven point in units remains the same.
• D)Contribution margin ratio increases.

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Definitions:

Artificially Scarce Good

A good that is excludable but nonrival in consumption.

Pay-Per-View

A type of television or internet broadcasting service by which a user pays to view a specific television program or event.

Artificially Scarce

A situation where the supply of a good is limited by factors other than its physical scarcity, often due to regulatory or monopolistic practices.

Excludable

Referring to a good, describes the case in which the supplier can prevent those who do not pay from consuming the good.