Within the Relevant Range, If There Is a Change in the Level

question 130

Multiple Choice

Within the relevant range, if there is a change in the level of the cost driver, then ________.

• A) total fixed costs and total variable costs will change
• B) total fixed costs and total variable costs will remain the same
• C) total fixed costs will remain the same and total variable costs will change
• D) total fixed costs will change and total variable costs will remain the same

---

Definitions:

Economy

A system consisting of the production, trade, distribution, and consumption of goods and services by different agents in a given geographical location.

Bowed Shape

A curve representing the relationship between two variables where the curve slopes outward, commonly used to describe certain types of economic functions.

Production Possibilities Frontiers

A figure that depicts the absolute maximum production capacities for two goods, based on a set of inputs that consist of resources and various additional components.

Technological Advances

Innovations and improvements in technology that enhance efficiency, productivity, and the quality of goods and services.