A Semivariable Cost

question 88

Multiple Choice

A semivariable cost:

• A)Increases and decreases directly and proportionately with changes in volume.
• B)Changes in response to a change in volume,but not proportionately.
• C)Increases if volume increases,but remains constant if volume decreases.
• D)Changes inversely in response to a change in volume.

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Definitions:

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product or service.

Oligopolistic Firm

A company operating in an oligopoly market structure, characterized by a few firms dominating the market, leading to specific behaviors like pricing collusion or competition.

Price Charge

The amount of money demanded by a seller for a product or service, essentially the cost to the buyer.

Marginal Revenue Curve

A graphical representation that shows how the addition of one more unit of a good or service sold affects the total revenue of a business.