Which One of the Following Statements Is Not True

question 49

Multiple Choice

Which one of the following statements is not true?

• A)Total fixed costs remain the same regardless of volume within the relevant range.
• B)Total variable costs change with volume.
• C)Total variable costs decrease as the volume increases.
• D)Fixed costs per unit increase as the volume decreases.
• E)Variable costs per unit remain the same regardless of the volume.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, holding all other factors constant.

Inelastic

Describes a situation in economics where the demand or supply of a good is not significantly changed when the price of the good changes.

Wage Rates

The standard amount of pay given to workers per unit of time, which can vary based on job, location, experience, and skill level.

Payrolls

The total amount of wages and salaries paid by a business or organization to its employees, usually recorded over a specific period of time.