Which of the Following Is the Best Example of a Durable

question 114

Multiple Choice

Which of the following is the best example of a durable good?

• A)detergent
• B)package of lightbulbs
• C)bottle of nail polish
• D)computer printer
• E)bag of cat food

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Definitions:

Annual Lease

A contract or agreement stipulating the rental terms of a property for one year, often specifying the rent amount, payment schedules, and other conditions.

Minimum Efficient Scale

The smallest level of production at which long-term average total costs are minimized.

Natural-Monopoly Situation

A market condition in which a single firm can produce output at a lower cost than can multiple firms, leading to a monopoly justified by efficiencies of scale.

Implicit Costs

The opportunity costs that arise from using resources that a business already owns rather than earning revenue from those resources elsewhere.