Costs That Are Fixed Over Some Ranges of Output and Variable

question 5

Multiple Choice

Costs that are fixed over some ranges of output and variable over others are called:

• A) opportunity costs
• B) semi-variable costs
• C) fixed costs
• D) variable costs
• E) implicit costs

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable, leading to a misallocation of resources.

Baseball Hat

A type of soft cap with a rounded crown and a stiff bill projecting in front.

Tax

A mandatory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Marginal Tax Rate

The amount of tax paid on an additional dollar of income, which is typically a percentage that increases as income rises.