A Firm's Fixed Cost

question 46

Multiple Choice

A firm's fixed cost

• A)does not vary with output.
• B)does not change between the short run and the long run.
• C)is generally a higher percentage of its total cost at high output quantities than at low output quantities.
• D)All of the above are true.

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Definitions:

Public Sale

A sale conducted openly, where goods or assets are sold to the highest bidder, typically through an auction process.

Reasonable Notification

The requirement to provide timely and clear notice to another party as demanded by the circumstances or governed by agreement or law.

FOB Jim's Farm

A shipping term that stands for "Free On Board," indicating that the seller delivers the goods on board a vessel chosen by the buyer at the specified location, in this case, Jim's Farm.

Risk of Loss

a legal term referring to the concern about who bears the financial burden if goods are damaged or lost during a transaction, typically addressed in sales contracts.