Figure 6-9 -Refer to Figure 6-9.The Data in the Diagram Indicates That

question 80

Multiple Choice

Figure 6-9

-Refer to Figure 6-9.The data in the diagram indicates that DVDs are

• A)luxury goods.
• B)inelastic goods.
• C)necessities.
• D)both luxury goods and inelastic goods.
• E)both necessities and inelastic goods.

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Definitions:

Output

The amount of goods or services produced by a company, sector, or economy.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent, salaries, and insurance premiums.

Average Total Cost

The total cost of production divided by the number of units produced, representing the per-unit cost of production.

Marginal Cost

Indicates the change in total production cost that arises when the quantity produced is increased by one unit.