What Type of Cost Is Not Relevant to the Process

question 122

Multiple Choice

What type of cost is not relevant to the process of research and development or invention in general?

• A)Fixed cost
• B)Marginal cost
• C)Variable cost
• D)Social cost

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Definitions:

Short Run

A period in economics during which at least one input is fixed and cannot be changed by the firm.

Long Run

A period in which all factors of production and costs are variable and companies can enter or exit an industry.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price levels at a given time.

Substitutes

Goods or services that can be used in place of each other; when the price of one goes up, the demand for the other can increase.