Data for Cost a and Cost B Appear Below

question 120

Multiple Choice

Data for Cost A and Cost B appear below: Which of the above best describes the behavior of Costs A and B?

• A)Cost A is fixed, Cost B is variable.
• B)Cost A is variable, Cost B is fixed.
• C)Both Cost A and Cost B are variable.
• D)Both Cost A and Cost B are fixed.

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Definitions:

Agricultural Product

Goods resulting from the cultivation of plants and rearing of animals intended for human use or consumption.

Subsidies

Financial support provided by a government to reduce the costs of producing goods or services, intended to encourage production or consumption.

Agricultural Subsidies

Financial support provided by the government to farmers to help stabilize food prices, ensure a steady supply of agricultural products, or directly increase farmers' incomes.