The Graph of a Variable Cost Per Unit When Plotted

question 78

Multiple Choice

The graph of a variable cost per unit when plotted against its related activity base appears as a:

• A) circle.
• B) rectangle.
• C) straight line.
• D) curved line.

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Definitions:

Horizontal Axis

The “left-right” or “west-east” measurement line on a graph or grid.

Economic Profit

The discrepancy between a company's complete income and its aggregate expenditures, covering both out-of-pocket and assumed costs.

Purely Competitive

A market structure characterized by a large number of sellers offering identical products, with easy market entry and exit and no single seller controlling market prices.

Differentiated Product

A merchandise unique from its rivals due to its superior quality, distinctive features, or branding.