What Is the Relationship Between Per-Unit Fixed Costs and Output

question 199

Multiple Choice

What is the relationship between per-unit fixed costs and output?

• A)Per-unit fixed costs stay the same as output changes.
• B)Per-unit fixed costs decrease as output increases.
• C)Per-unit fixed costs decrease as output decreases.
• D)Per-unit fixed costs increase as output increases.

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Definitions:

Financial Advisors

Professionals who help individuals manage their finances by providing advice on money issues such as investments, insurance, mortgages, college savings, estate planning, taxes, and retirement.

Collateral

Assets that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid according to the agreed upon terms.

Cash Flows

The full extent of money transactions processed by a business, considerably affecting its ability to liquidate assets.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and other investments.