Fixed Costs Exist

question 116

Multiple Choice

Fixed costs exist

• A)in both the short run and the long run.
• B)in the short run but not in the long run.
• C)in the long run but not in the short run.
• D)in neither the short run nor the long run.
• E)sometimes in the short run and sometimes in the long run.

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Definitions:

Income

Money received, especially on a regular basis, for work, through investments, or from business activities, used to fund day-to-day expenditures or save for the future.

Bottom Quintile

The lowest fifth or 20% segment of the population in a statistical distribution, often used in reference to income levels.

Income

Earnings received by an individual or business for their labor, investments, or through the sale of goods or services.

Lorenz Curve

Data plotted to show the percentage of income enjoyed by each percentage of households, ranked according to their income.