A Fixed Cost Remains Constant in Total and on a Per

question 180

True/False

A fixed cost remains constant in total and on a per unit basis at various levels of activity.

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Definitions:

Free Enterprise

An economic system in which private businesses operate in competition and largely free of state control, with minimal government intervention.

Price Mechanism

The method through which changes in supply and demand cause prices to increase or decrease, directing how resources are distributed in a market-based economy.

Market Failure

An instance where goods and services are distributed by an unregulated market in a manner that is not optimum, frequently causing a reduction in the total wellbeing of society.

Public Sector

The part of an economy that is controlled by the government, including public services and enterprises.