Answer:
<em>(A) Unit variable costs fluctuate and unit fixed costs remain constant.</em>
Explanation:
The <em>fixed costs</em> are the costs which have to be incurred always, irrespective of what the output produced is by the firm. For instance, a firm always has to charge depreciation on its fixed assets, pay salary to the premises staff and pay fixed salary to the managers for managing etc, irrespective of whatever output it produces.
<em>Variable costs</em> are the costs which vary with the level of output produced activity. For example, if more output is produced more will be the raw material payments, more will be the manufacturing related other expenses and more will be the wages paid to the labour etc and vice-versa.
Hence, thereby the per <em>unit variable costs fluctuate and unit fixed costs remain constant.</em>
Answer:
C. The government can change the reserve
ratio.
Answer:
C $1,104
Explanation:
TIPS are the form of bonds which are specially designed for the purpose to protect the investors against the inflation.
The principal value of the bond in case of TIPS is adjusted for yearly inflation.
Based on the above discussion the value of TIPS bond can be calculated using the below formula:
Value of bond at maturity=Principal amount (1+inflation rate)^5
=1,000(1+2%)^5
=1,104
So the answer is C $1,104
