In Order for a Taxicab to Be Operated in New

question 10

Multiple Choice

In order for a taxicab to be operated in New York City, it must have a medallion on its hood. Medallions are expensive, but can be resold, and are therefore an example of:

• A) a fixed cost.
• B) a variable cost.
• C) an implicit cost.
• D) an opportunity cost.
• E) a sunk cost.

Calculate total variable costs based on unit variable costs and production level.

Understand the concept of sunk costs, marginal costs, and their implications for decision-making.

Identify examples of fixed, variable, and sunk costs in various business scenarios.

Compute fixed costs from total costs and variable costs.

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Definitions:

Vertically

In a direction or alignment that goes straight up from a given point, perpendicular to the horizon.

Technological Innovations

Developments and advancements in technology that introduce new methods, ideas, or products.

Skyscraper

A very tall building of many stories, typically found in urban centers.

Immigrants

People who move from one country to another with the intention of settling permanently in the new country, contributing to its demographic, cultural, and economic aspects.