Fixed Costs Are Those Costs That Are

question 57

Multiple Choice

Fixed costs are those costs that are

• A)zero if the firm produces no output in the short run.
• B)unchanging through time.
• C)independent of the rate of output.
• D)for inputs whose prices are fixed.

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Definitions:

Corporation's Name

The legal name under which a corporation is registered to conduct business, distinct from its owners and shielded by the corporate veil.

Shareholder

An individual or entity that owns a share or shares of stock in a corporation, thus having an interest in its performance and governance.

Stock

Represents ownership in a corporation, entitling the holder to a share of the company's profits and assets.

Right Of First Refusal

A contractual right that gives its holder the option to enter a business transaction with the owner of something, before the owner is entitled to enter into that transaction with a third party.