The Sum of the Expenses of a Firm That Is

question 208

Multiple Choice

The sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as

• A)fixed cost.
• B)total cost.
• C)variable cost.
• D)marginal cost.
• E)overhead cost.

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Definitions:

Continuous Demand

Demand for a good or service that can be quantified at every level of production or price, without any gaps.

First Theorem of Welfare Economics

A principle stating that under certain conditions, a market in equilibrium will allocate resources efficiently in a way that maximizes total social welfare.

Competitive Equilibrium

A market state where supply equals demand, leaving no incentive for price changes as long as external conditions remain constant.

Homothetic Preferences

Preferences where if a consumer prefers a bundle of goods A to B, they will also prefer a scaled-up version of A to the same scale-up of B, maintaining the same proportions.