The Increase in Time and Cost with Distance Is Referred

question 62

Multiple Choice

The increase in time and cost with distance is referred to as

• A)production costs.
• B)distribution costs.
• C)friction of distance.
• D)distance decay.

---

Definitions:

Fixed Cost

Expenses that do not change with changes in the volume of production or sales, such as rent, salaries, and insurance.

Variable Cost

A variable cost changes in direct proportion to the level of production or activity in a business, such as materials and labor.

Marginal Cost

The additional expense incurred from generating one more unit of a product or service.

Total Fixed Costs

The total of all expenses that stay unchanged no matter the amount of production or output.