Step Costs Are Fixed Over Only a Small Range of Activity.Once

question 133

Multiple Choice

Step costs are fixed over only a small range of activity.Once that level of activity has been exceeded, total cost

• A)increases because the excess costs become variable.
• B)increases and remains constant over another small range of activity.
• C)remains the same regardless of activity.
• D)decreases and remains constant over another small range of activity.

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Definitions:

Demand Curves

Curves that describe buyer behavior and tell you how much consumers will buy at a given price.

Consumer

An individual or group who purchases goods or services for personal use.

Producer

An individual or entity that creates or supplies goods or services.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.