A Firm's Total Fixed Cost (TFC) Is a Cost

question 351

Multiple Choice

A firm's total fixed cost (TFC) is a cost

• A) it is certain ("fixed") that the firm must pay.
• B) that does not change as output changes.
• C) that is dependent on marginal cost.
• D) that is paid in only the long run.

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Definitions:

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns, typically involving a level of risk.

Private Placement

The sale of securities directly to a small number of private investors rather than through a public offering, often used by smaller companies to raise capital.

Public

Refers to the general populace or to companies and organizations that are owned by government entities or whose shares are traded publicly.

Venture Capital Groups

Organizations that provide funding to startups or small businesses with high growth potential in exchange for equity.