A Sawmill Processes Logs into Timber

question 76

Multiple Choice

A sawmill processes logs into timber.Identify the costs below that are an example of a fixed cost.(i) rent paid on the factory
(ii) maintenance of the trucks used for transport of logs
(iii) wages of the workers

• A)(i) only
• B)(i) and (ii)
• C)(ii) and (iii)
• D)(i), (ii) and (iii)

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Definitions:

English Auction

A common type of auction where participants openly bid against one another, with the price gradually increasing until only the highest bidder remains.

Rational Self-Interest

The principle that individuals tend to make decisions that they perceive to be the best for their own welfare and success.

Collude

A secret or illegal cooperation or conspiracy, especially between parties to deceive or defraud others.

Reserve Price

A reserve price is the minimum price a seller is willing to accept for an item at auction; if bids do not reach this price, the item is not sold.