Total Fixed Costs

question 24

Multiple Choice

Total fixed costs:

• A) Vary inversely with changes in activity
• B) Increase with an increase in activity
• C) Decrease with a decrease in activity
• D) Are constant regardless of changes in activity

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Definitions:

Technological Capabilities

Refers to the knowledge, equipment, and processes that an organization has at its disposal to develop new products or improve existing ones.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than its competitors.

Fewer Resources

Fewer resources refer to having a limited quantity of inputs or materials available for production or consumption compared to what is needed or demanded.

Specialization In Production

The process by which businesses or economies focus on producing a limited range of goods or services to gain greater efficiency and productivity.