When the Level of Activity Decreases, Variable Costs Will

question 69

Multiple Choice

When the level of activity decreases, variable costs will:

• A)increase per unit.
• B)increase in total.
• C)decrease in total.
• D)decrease per unit.

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Definitions:

Utility Function

A representation or model that quantifies an individual's preferences for various outcomes or bundles of goods and services, used in economics to analyze behavior.

Auto Repairs

Services aimed at diagnosing and fixing problems related to a vehicle's performance or condition.

Gasoline

A flammable liquid derived from petroleum, used mainly as fuel in internal combustion engines.

Utility Function

A representation in economics of how a consumer ranks different bundles of goods according to the level of satisfaction or utility they provide.