In His Farewell Address to the Nation After Stepping Down

question 23

Multiple Choice

In his Farewell Address to the nation after stepping down as president, George Washington warned the United States ______.

• A) against participating in any kind of trade with other nations
• B) to project itself abroad as much as possible so as to have more allies than enemies
• C) against having friendly relations with other countries
• D) not to get drawn into foreign entanglements in Europe

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Definitions:

Fixed Cost

Any cost that does not depend on the firms’ level of output. These costs are incurred even if the firm is producing nothing. There are no fixed costs in the long run.

Marginal Costs

Marginal Costs involve the additional expenses incurred from the production of one extra unit of a product or service.

Total Variable Cost

the sum of all costs that vary with the level of production, such as materials and labor directly involved in manufacturing.

Total Fixed Costs

The sum of all consistent, non-variable expenses a company must pay, regardless of its level of production.