Fixed Costs

question 53

Multiple Choice

Fixed costs

• A)Increase with the level of production in the short run.
• B)Can be altered in the short run but not in the long run.
• C)Increase as we move from the short run to the long run.
• D)Are constant in the short run.

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Definitions:

Liquidate a Partnership

The process of dissolving a partnership by selling its assets, paying off debts, and distributing the remaining assets to partners.

Capital

represents the financial resources that are used by a business to fund its operations and growth, typically including funds contributed by owners or generated through profit.

Cash

Currency and coins, along with bank balances, checks, and money orders, readily available for use in transactions.

Latent Functions

Purposes and activities that are unintended, unrecognized, and not immediately obvious.