Asked by
Ginger Haines
on Oct 12, 2024Verified
Which statement is true?
A) Fixed cost rises as output rises.
B) Variable cost falls as output rises.
C) In the short-run,at an output of zero,total cost = zero.
D) None of these statements are true.
Variable Cost
Costs that change in proportion to the level of activity or volume of goods produced.
Fixed Cost
Costs that do not vary with the level of output or sales, such as rent, salaries, or property taxes, consistent regardless of business activity.
Output
Output refers to the total amount of goods and services produced by a country, company, or economic system.
- Understand the difference between fixed costs and variable costs and how they relate to total cost.
Verified Answer
CH
Learning Objectives
- Understand the difference between fixed costs and variable costs and how they relate to total cost.