Fixed Costs

question 168

Multiple Choice

Fixed costs

• A)are equal to explicit costs plus implicit costs.
• B)do not vary as output varies.
• C)are the same as total costs for any level of output greater than zero.
• D)are another name for sunk costs.

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Definitions:

Total Revenue

The total amount of money received by a company from its sales of goods or services before any expenses are subtracted.

Assistant's Salary

The compensation paid to an assistant, which typically includes wages or salaries for clerical, support, or administrative roles.

Fixed Factors

Inputs or resources in the production process that cannot be easily increased or decreased in the short term, such as buildings and land.

Long Run

A period in which all inputs, including capital, are variable, allowing firms to adjust all factors of production.