Which of the Following Statements Is True Regarding Fixed and Variable

question 191

Multiple Choice

Which of the following statements is true regarding fixed and variable costs?

• A) Both costs are constant when considered on a per-unit basis.
• B) Both costs are constant when considered on a total basis.
• C) Fixed costs are constant in total, and variable costs are constant per unit.
• D) Variable costs are constant in total, and fixed costs vary in total.

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Definitions:

Agricultural Products

Goods derived from farming and agriculture, such as crops and livestock.

Inelastic Demand

A market situation where the quantity demanded of a good or service changes very little with a change in its price.

Agricultural Products

Physical goods produced through farming or the broader agricultural sector, including both food items and raw materials.

Sugar Price Support

Government intervention to stabilize or increase the market price of sugar through mechanisms such as tariffs, quotas, or direct subsidies to farmers.