A Manager Determined That Certain Costs Were Not Responsive to Changes

question 68

Multiple Choice

A manager determined that certain costs were not responsive to changes in activity level.What are these costs?

• A)Mixed
• B)Flexible
• C)Variable
• D)Fixed

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Definitions:

Equilibrium Value

The stable value at which supply equals demand for a particular good, service, or financial instrument, leading to a balanced market condition.

Marginal Product

The additional output that results from using one more unit of a particular input, while holding other inputs constant.

Average Product

The output produced per unit of input, calculated by dividing total output by the number of units of a specific input.

Marginal Product

The boost in output stemming from an increment in input by one unit.