Costs That Vary in Total in Direct Proportion to Changes

question 79

Multiple Choice

Costs that vary in total in direct proportion to changes in an activity level are called

• A) fixed costs
• B) sunk costs
• C) variable costs
• D) differential costs

---

Definitions:

Oligopolistic Industries

Industries dominated by a small number of firms, leading to competitive conditions that fall between a monopoly and perfect competition.

Industrial Concentration

A measure of the extent to which production in an industry is dominated by a few large firms.

Technological Advance

The introduction of new technologies or the improvement of existing technologies, enhancing productivity and possibly leading to economic growth.

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more appealing to a particular target market.