Which of the Following Is True of a Firm's Fixed

question 51

Multiple Choice

Which of the following is true of a firm's fixed costs?

• A) A firm should shut down if it cannot cover its fixed costs.
• B) Fixed costs are incurred regardless of the firm's level of output.
• C) Fixed costs are the same as a firm's total costs.
• D) Fixed costs are reduced to zero if the firm produces no output.
• E) Accounting profit equals economic profit when fixed costs fall to zero.

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Definitions:

Numerical Understanding

The ability to comprehend and work with numbers, including basic arithmetic and numerical concepts.

Preoperational Stage

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, characterized by symbolic thought and egocentrism.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others and to understand that others have beliefs, desires, and intentions that are different from one's own.

Language Learning

The process of acquiring the ability to comprehend and communicate within a language system, typically occurring in human early development and through exposure to the language.