If a Business Ignores Some of Its Fixed Costs as Irrelevant

question 100

Multiple Choice

If a business ignores some of its fixed costs as irrelevant to its production decision, this type of cost is termed:

• A) implicit costs
• B) explicit costs
• C) development costs
• D) sunk costs

Assess the impact of labor relations on business operations and competition.

Understand the factors contributing to the decline in union density.

Recognize the legal and regulatory framework governing labor relations.

Understand the significant contributions of African Americans to the Revolutionary War.

---

Definitions:

Budget Constraints

The limitations on the consumption choices of individuals or organizations due to limited resources.

Substitution Effect

The economic principle that as prices rise or incomes decrease, consumers will replace more expensive items with less costly alternatives.

Budget Constraints

The limitations on the consumption bundles that a consumer can afford based on their income and the prices of goods and services.

Law of Demand

The principle that, all other factors being equal, as the price of a product decreases, the quantity demanded of the product will increase, and vice versa.