Which of the Following Costs Decrease with Increase in Output

question 230

Multiple Choice

Which of the following costs decrease with increase in output?

• A) Total variable cost
• B) Total fixed cost
• C) Total cost
• D) Average fixed cost per unit
• E) Sales commissions

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Definitions:

Weather Futures

Financial derivatives that allow for the hedging against or speculation on weather conditions, such as temperature or precipitation levels.

Treasury Notes Futures

Futures contracts based on U.S. Treasury notes, which are debt securities issued by the U.S. government with maturities ranging from two to ten years.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the principal, paid by the borrower for the use of borrowed funds.

Long Position

Owning or buying securities with the expectation that their value will increase over time, allowing the investor to profit from the appreciation.