Studies Have Found That Facilitating Payments Ultimately Increase the Cost

question 64

Multiple Choice

Studies have found that facilitating payments ultimately increase the cost of doing business and as a result some companies have

• A) embraced a "wait and see" approach.
• B) made such payments a part of normal business practice.
• C) adopted a zero-tolerance approach.
• D) agreed that such payments should only be used in the home country.
• E) asked the United Nations to legalize these payments.

---

Definitions:

Total Cost

The complete cost of production that includes both fixed and variable costs.

Opportunity Cost

The best alternative that we forgo, or give up, when we make a choice or a decision.

ΔTVC/Δq

ΔTVC/Δq represents the change in Total Variable Cost (TVC) resulting from producing one additional unit of output, equivalent to Marginal Cost.

AVC

AVC, or Average Variable Cost, is the total variable costs divided by the quantity of output produced.