What Is Variation Within a Year, Such as High Sales

question 17

Multiple Choice

What is variation within a year, such as high sales at Christmas and Easter and low sales in January,
Called?

• A) Secular trend
• B) Seasonal variation
• C) Cyclical variation
• D) Episodic variation
• E) Irregular variation

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Definitions:

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output.

Total Variable Cost

The sum of all costs that vary with the level of output produced by a company.

Fixed Costs

Costs that do not vary with the level of production or sales.

Short Run

A period in which at least one input, such as plant size or the number of firms in the market, is fixed and cannot be changed.