A Fixed Cost That the Firm Cannot Avoid If It

question 38

Multiple Choice

A fixed cost that the firm cannot avoid if it shuts down and produces zero output must be:

• A)an accounting cost.
• B)a marginal cost.
• C)an equilibrium cost.
• D)a sunk cost.

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Definitions:

Uterine Fibroids

Noncancerous growths in the uterus that can develop during a woman's childbearing years.

Uterus

A major female reproductive organ in which a fertilized egg implants and develops into a fetus.

Conceive

The act or process of becoming pregnant, involving the fertilization of an egg by sperm.

Intercourse

The physical act of sexual activity, especially involving penetration, between two individuals.