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:

North Korea

An East Asian country officially known as the Democratic People's Republic of Korea, noted for its centralized economy and autocratic government.

Specialization

The use of the resources of an individual, a firm, a region, or a nation to concentrate production on one or a small number of goods and services.

Production

The act of creating goods or services using labor, equipment, and natural resources.

Coincidence-of-wants

A situation in barter economies where two parties each have something the other wants, facilitating a direct exchange without the need for money.