Costs That Do Not Vary According to Production Volume Are

question 41

Multiple Choice

Costs that do not vary according to production volume are called _____.

• A) total costs
• B) marginal costs
• C) switching costs
• D) variable costs
• E) fixed costs

---

Definitions:

Cobb-Douglas Preferences

A utility function used in economics to represent preferences of consumers, characterized by goods being perfect substitutes or complements to some degree.

Utility Function

An expression used in economics to quantify the happiness or satisfaction gained from consuming a set of goods or services.

Consumption Bundle

A combination of different goods and services that a consumer chooses to purchase at a given time.

Quasilinear Preferences

Preferences represented by utility functions where the marginal utility of consumption is constant irrespective of other goods consumed.