A Plant Relying Mostly on Manual Labour Would Generally Have

question 104

Multiple Choice

A plant relying mostly on manual labour would generally have:

• A) more variable than fixed costs.
• B) more fixed than variable costs.
• C) all fixed costs.
• D) all variable costs.

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Definitions:

Consumer Goods

Products that are bought for consumption by the average consumer.

Capital Goods

Long-lasting goods acquired by businesses to create goods and services, as opposed to being directly consumed by consumers.

Opportunity Cost

The act of losing potential profits from other pathways when one route is taken.

Economic Models

Simplified frameworks used to illustrate and analyze economic processes, behaviors, or theories, often employing mathematical formulas to predict economic outcomes.