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.

---

Definitions:

Oligopolists

Firms that are part of an oligopoly, a market structure characterized by a small number of firms that have significant control over market prices and competition.

Homogeneous Product

A product that is viewed as identical no matter who produces it, making it impossible for consumers to distinguish between products based on brand or quality.

Peach Suppliers

Businesses or individuals that provide peaches to the market, contributing to the supply of this specific type of fruit.

Oligopolists

Companies within an oligopoly, a market structure characterized by a small number of firms controlling a large portion of the market share.