Which of the following is the correct statement about fixed costs? The fixed cost per unit will decrease when volume increases.
The fixed cost per unit will decrease when volume decreases. The fixed cost per unit will increase when volume increases. The fixed cost per unit does not change when volume changes.
The correct statement is: "The fixed cost per unit will decrease when volume increases."
Explanation:
Total fixed costs remain the same within a relevant range, but the <em>fixed cost per unit</em> decreases as production increases, because the same fixed costs are spread over more units produced.
In statistics, reliability refers to how consistent a measurement scale is overall. Measurement scales with high reliability scores would be able to produce similar results when tested with groups of samples similar to the initial testing conditions.
Reliability scores are measured through reliability coefficient which spans from 0.0 to 1.0. What a reliability coefficient of 0.92 means is (B) 92% of the variance in scores is explained by real differences.
The price elasticity of demand for the students is:
inelastic.
Explanation:
The price elasticity of demand for the students is inelastic because there is no change in the quantity demanded by students that changes the price at which pizza is sold to the students. If one student buys the pizza, the price charged remains $10 and if 1,000 students buy the pizza, the price remains $10 per unit. Therefore, students' demand for the pizza is said to be static irrespective of price because the price is fixed.
