Question: 9. Test Company derived the following cost function for the production of its product. Cost = $16,000 + $10X, where x is the number of

9.

Test Company derived the following cost function for the production of its product.

Cost = $16,000 + $10X, where x is the number of units.

Next month, Test Company expects to produce 4,000 units.

Suppose production is less than expected so that Test Company only produces 3,500 units. Total fixed cost will

Increase

Decrease

Remain unchanged

An incorrect answer because Blackboard requires four choices

10.

  1. Test Company derived the following cost function for the production of its product.

    Cost = $16,000 + $10X, where x is the number of units.

    Next month, Test Company expects to produce 4,000 units.

    Suppose production is less than expected so that Test Company only produces 3,500 units. Variable cost per unit will

    Increase

    Decrease

    Remain unchanged

    An incorrect answer because Blackboard requires four choices

11.

Test Company derived the following cost function for the production of its product.

Cost = $16,000 + $10X, where x is the number of units.

Next month, Test Company expects to produce 4,000 units.

Suppose production is less than expected so that Test Company only produces 3,500 units. Fixed cost per unit will

Increase

Decrease

Remain unchanged

An incorrect answer because Blackboard requires four choices

12.

Test Company derived the following cost function for the production of its product.

Cost = $16,000 + $10X, where x is the number of units.

Next month, Test Company expects to produce 4,000 units.

Suppose production is less than expected so that Test Company only produces 3,500 units. Total cost per unit will

Increase

Decrease

Remain unchanged

An incorrect answer because Blackboard requires four choices

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