Which Expense Varies Directly with Production

question 43

Multiple Choice

Which expense varies directly with production?

• A) Managers salary
• B) Direct materials
• C) Depreciation of equipment
• D) Insurance

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Definitions:

Dominant Strategy

A strategy in game theory that is best for a player, regardless of the strategies chosen by the other players.

Maximum Profits

The highest amount of earnings achievable by a firm when marginal costs equal marginal revenue.

Cartel

A group of producers or vendors coming together to keep prices elevated and limit competition.

Perfectly Competitive

In a perfectly competitive market, numerous small firms sell identical products, and no single seller can influence the market price.