Costs That Are Spent and Cannot Be Changed in the Period

question 87

Multiple Choice

Costs that are spent and cannot be changed in the period of time under consideration are called:

• A) variable costs.
• B) total costs.
• C) marginal costs.
• D) fixed costs.

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to change.

Marginal Revenue

The additional income gained from selling one more unit of a product or service.

Monopolist's Demand Curve

The demand curve faced by a monopolist, which is the same as the market demand curve, indicating that the monopolist can set the price only by choosing the quantity to produce.

Elastic

Describes a situation in which the demand or supply for a product changes significantly when its price changes.