Companies incur fixed and variable costs when creating and delivering value to c

ID: 1112081 • Letter: C

Question

Companies incur fixed and variable costs when creating and delivering value to customers. Fixed costs:

Change with the quantity produced or sold.

Do not change with the quantity produced or sold.

Are not relevant when calculating break-even volume.

Do not influence the pricing decision for gasoline.

Do not have an influence on calculating economies of scale.

Change with the quantity produced or sold.

Do not change with the quantity produced or sold.

Are not relevant when calculating break-even volume.

Do not influence the pricing decision for gasoline.

Do not have an influence on calculating economies of scale.

Answer

Do not change the quantity produced or sold.

The cost of fixed input is called fixed cost which does not increase as the output increases,

the economics of scale is the long run concept and there is no fixed input in long run, the gasoline pricing is influenced by the economics of scale.

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