Petrous Company Incurs Both Fixed and Variable Production Costs

question 7

Multiple Choice

Petrous Company incurs both fixed and variable production costs.Assuming that production is within the relevant range,if volume goes up by 28%,then the total variable costs would ________.

• A) increase by 28%
• B) remain the same
• C) increase by an amount less than 28%
• D) decrease by 28%

---

Definitions:

U.S. Investment Spending

Money expended on capital goods in the United States, which includes expenditures on equipment, infrastructures, and buildings.

Computing Technology

The branch of technology that encompasses computers and their software, hardware, and networking capabilities.

Productivity Growth Rate

The productivity growth rate measures how the efficiency of production in an economy increases over time, often reflected in the output per unit of input, such as labor hours, over a specific period.

Output

Refers to the total amount of goods and services produced by an economic system over a specific period.