All of the Following Are Considered Components of Fixed Costs

question 10

Multiple Choice

All of the following are considered components of fixed costs EXCEPT:

• A) Cost of land
• B) Equipment
• C) Insurance
• D) Utilities

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Definitions:

Price Mechanism

The system by which the forces of supply and demand determine the prices of goods and services and allocate resources within an economy.

John Kenneth Galbraith

John Kenneth Galbraith was an influential Canadian-American economist and public intellectual who contributed significantly to the development of modern economic thought, particularly in the areas of consumer behavior, public policy, and economic history.

Mixed Economy

An economic system that combines private and public enterprise, incorporating elements of both capitalism and socialism.

Adam Smith

A Scottish economist, philosopher, and author who is considered the father of modern economics and is best known for his book "The Wealth of Nations."