When 20,000 Units Are Produced,fixed Costs Are $16 Per Unit

question 40

Multiple Choice

When 20,000 units are produced,fixed costs are $16 per unit.Therefore,when 16,000 units are produced,fixed costs will ________.

• A) increase to $20 per unit
• B) remain at $16 per unit
• C) decrease to $10 per unit
• D) total $160,000

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Definitions:

Regulation

The establishment and enforcement of rules or laws by a governmental authority to control or manage specific activities or industries.

Executive Agencies

Agencies of the executive branch of government responsible for enforcing laws and regulations within their respective areas of authority.

Independent Agencies

Government bodies that operate independently of the executive branch, often created to regulate or oversee specific sectors or issues.

Informal Rule Making

A regulatory process where governing bodies develop and issue rules or regulations without engaging in formal procedures such as public hearings.