The True Statement About Cost Behavior Is That

question 2

Multiple Choice

The true statement about cost behavior is that:

• A) variable costs change on a per-unit basis and change in total as activity changes.
• B) fixed costs are constant on a per-unit basis and change in total as activity changes.
• C) fixed costs are constant on a per-unit basis and are constant in total as activity changes.
• D) fixed costs change on a per-unit basis and are constant in total as activity changes.
• E) variable costs are constant on a per-unit basis and are constant in total as activity changes.

---

Definitions:

Complementary Good

A product that is consumed along with another, such that the demand for one increases the demand for the other.

Buyers

Buyers are individuals or entities that purchase goods and services for personal use, resale, or production purposes in the market.

Complementary Goods

Products or services that are typically used together, where the increase in consumption of one leads to an increase in consumption of the other.

Good X

A term used to denote a specific product or commodity in economic models.