Sam's Surf Shop Has Total Costs of $2,000 When It

question 121

Multiple Choice

Sam's surf shop has total costs of $2,000 when it is not producing any surfboards.This means that

• A)Variable costs are $2000.
• B)Fixed costs are $2,000.
• C)The shop is very inefficient in its production.
• D)Fixed costs are zero.

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Definitions:

Few Firms

A market structure characterized by a small number of companies dominating the industry, often leading to oligopolistic competition.

Optimal Strategy

A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem, where the choice is made to maximize effectiveness or efficiency.

Oligopolists

Firms that are part of an oligopoly, possessing significant market power which allows them to influence the market's prices, output, and overall conditions.

Unique Product

A good or service that is distinct from others in the market due to its unique features, design, or branding.