A Fixed Cost Is

question 23

Multiple Choice

A fixed cost is

• A)the cost of any input with a fixed price per unit.
• B)a cost which increases in a fixed proportion as output increases.
• C)a cost that does not vary with output and the firm must pay it even if output is zero.
• D)a cost that does not vary with output but the firm can avoid paying it if output is zero.

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Definitions:

Workers

Individuals engaged in a form of employment or labor, contributing their skills and efforts in exchange for financial compensation or wages.

Gas Tax

A tax imposed on the sale of gasoline, typically used to fund transportation and infrastructure projects.

Inelastic

Describes demand that is relatively unresponsive to price changes, meaning the percentage change in quantity demanded is smaller than that in price.

Consumers

Individuals or organizations that use economic goods and services generated within the economy, directly affecting demand trends and market dynamics.