Which of the Following Statements About a Firm's Short-Run Variable

question 289

Multiple Choice

Which of the following statements about a firm's short-run variable costs is correct?

• A) They increase as the level of output decreases.
• B) They typically include the cost of workers' wages.
• C) They include the costs of plant and equipment.
• D) They are always a greater expense than are fixed costs.

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Definitions:

Efficiency

The ability to achieve a desired result with minimal waste of time, effort, or resources.

Quality Improvement

An ongoing process of detection and reduction of errors, improvement of operations, and ensuring that standards of quality are met consistently.

TQM

Total Quality Management; a comprehensive approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback.

Six Sigma

A set of techniques and tools for process improvement that aims to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes.