While Having a Discussion, Technician a Says That to Tell

question 15

Multiple Choice

While having a discussion, Technician A says that to tell the difference between a brake fluid leak and gear oil from an axle leak, try washing the fluid off with water. Technician B says that neither brake fluid nor gear oil is water soluble so the use of water would prove nothing. Who is correct?

• A) A only
• B) B only
• C) Both A and B
• D) Neither A nor B

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Definitions:

Short Run

A period in which at least one of a firm's inputs is fixed and cannot be varied.

Variable Costs

Expenses that directly fluctuate in accordance with the amount of production or output.

Average Cost

The total cost of production divided by the number of units produced, indicating the cost per unit.

Fixed Costs

Costs that do not vary with the level of production or business activity, such as rent, salaries, and insurance.