All of the Following Are Examples of Variable Expenses, Except

question 34

Multiple Choice

All of the following are examples of variable expenses, except:

• A) Insurance premiums
• B) Salaries and commissions
• C) Advertising and promotion
• D) Travel costs

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Definitions:

Income

Income refers to the financial earnings someone acquires regularly either from performing work or making investments.

Optimal Consumption Bundle

A combination of goods and services that maximizes a consumer's satisfaction or utility, given their income and the prices of goods and services.

Normal Good

A type of good for which demand increases as consumers' income increases, and vice versa.

Inferior Good

A category of product whose demand falls when the income levels of buyers rise, in opposition to normal goods.