Which of the Following Would Likely Be Considered a Variable

question 251

Multiple Choice

Which of the following would likely be considered a variable cost for a given time period?

• A) Sales commissions.
• B) Salary of the Chief Financial Officer.
• C) Automobile lease expense.
• D) Membership fee with the local seller's consortium.
• E) Insurance for the corporation's buildings.

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Definitions:

Constant-Cost Industry

An industry in which the entry and exit of firms have no effect on the prices firms in the industry must pay for resources and thus no effect on production costs.

Long-Run Economic Profits

Profits earned by a firm when all resources are adjusted to their long-term optimal level, indicating the firm is in equilibrium and cannot earn higher profits by altering production.

Free Entry And Exit

A situation in a market where firms can enter and leave the industry without facing significant barriers or costs, promoting competition.

Industry

A sector of the economy that involves the production and distribution of goods or services within a particular field.