|
Cost A
|
Number of Units Produced
|
Unit Cost
|
Total Cost
|
|
|
1 |
? |
$10 |
|
|
10 |
? |
$100 |
|
|
100 |
? |
$1,000 |
|
|
1,000 |
? |
$10,000 |
|
Cost B |
|
|
|
|
|
1 |
$5,000 |
? |
|
|
10 |
$500 |
? |
|
|
100 |
$50 |
? |
|
|
1,000 |
$5 |
? |
Which of the above best describes the behavior of Costs A and B?
A) Cost A is fixed, Cost B is variable.
B) Cost A is variable, Cost B is fixed.
C) Both Cost A and Cost B are variable.
D) Both Cost A and Cost B are fixed.