A Fixed Cost

question 23

Multiple Choice

A fixed cost

• A)changes in response to changes in activity for a given period of time.
• B)does not change in response to changes in activity for a given period of time.
• C)changes inversely to changes in activity for a given period of time.
• D)does none of the above.

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Specific Tariff

A type of tax levied on imports that is based on a specific amount of money per unit of the good imported, rather than on its value.

World Price

The global market price of a product, influenced by worldwide conditions of supply and demand.

World Price

The worldwide market value of a good or service, shaped by international demand and supply forces.