A Firm Decides to Purchase a Computer for $1,500 at the End

question 63

True/False

A firm decides to purchase a computer for $1,500 at the end of the month. The computer will be used for administrative purposes that do not vary with the volume of product that the firm makes. The computer has no re-sale value. This is a fixed cost. At the beginning of the month, this cost is non-sunk.

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Definitions:

Quadrant

One of the four sections of a Cartesian plane, divided by the x-axis and y-axis.

Plotting

The action of graphically representing data points or mathematical functions on a coordinate system.

X-intercepts

The points at which a graph intersects the x-axis, indicating the values of x when the function's output equals zero.

Y-intercepts

The points where a graph intersects the y-axis of a coordinate plane.