A Company That Makes Customized Pens Has Calculated Their Revenue

question 26

Multiple Choice

A company that makes customized pens has calculated their revenue and costs as follows for the most recent fiscal period: What are the company's fixed costs per fiscal period?

• A)$105 000
• B)$115 000
• C)$80 000
• D)$85 000
• E)$120 000

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Definitions:

Inferior Good

A type of good for which demand decreases when consumer income rises, contrasting with normal goods.

Total Revenue

The entire revenue produced from selling products or services that are central to the business's main activities.

Unit Elastic

A situation in which the percentage change in quantity demanded is equal to the percentage change in price.

Inelastic

Describes a situation where the demand for or supply of a good or service is relatively unresponsive to changes in price.