Fixed Costs

question 14

Multiple Choice

Fixed costs:

• A)may be either direct or indirect costs.
• B)vary with production or sales volume.
• C)include parts and materials used to manufacture a product.
• D)can be adjusted in the short run to meet actual demands.

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Definitions:

Supply Shifts

Changes in the quantity supplied of a good or service resulting from factors other than its price, such as manufacturing advancements or input costs.

Mustard Recall

An event where mustard products are withdrawn from the market due to reasons like contamination or mislabeling.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers.

Swiss Cheese

A type of cheese known for its distinct holes or 'eyes' and a mild, nutty flavor, originating from Switzerland.