When the Total Variable Costs Are Deducted from Total Mixed

question 167

Multiple Choice

When the total variable costs are deducted from total mixed costs,we obtain ________.

• A) mixed cost per unit
• B) variable cost per unit
• C) total high-low costs
• D) total fixed costs

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Definitions:

Returns to Scale

The rate at which output increases in response to a proportional increase in all inputs (factors of production).

Long-Run Average Total Cost Curve

A graphical representation showing the lowest possible average cost of production, allowing all factors of production to vary in order to minimize cost.

Shape

A distinct form or appearance of an object, often defined by its external boundaries.

Variable Cost

Costs that change in proportion to the level of activity or production volume.