Fixed Costs

question 168

Multiple Choice

Fixed costs

• A)are equal to explicit costs plus implicit costs.
• B)do not vary as output varies.
• C)are the same as total costs for any level of output greater than zero.
• D)are another name for sunk costs.

Distinguish between different business entities (sole proprietorship, partnership, and corporation) regarding structure and liability.

Recognize the principles of ratification and estoppel in agency relationships.

Understand the applications and limitations of the concept of limited liability in business organizations.

Understand the concept and implications of the production possibility frontier (PPF) and its shape.

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Definitions:

Extroverted

A personality trait characterized by being outgoing, sociable, and energized by interactions with others.

Agreeable

A personality trait characterized by a tendency to be pleasant, cooperative, and harmonious in interactions with others.

Conscientious

Characterized by the desire to do one’s work or duty well and thoroughly.

Centralized Control

An organizational structure where decision-making authority is concentrated at the top levels of management.