Total Fixed Cost Is the Cost of

question 251

Multiple Choice

Total fixed cost is the cost of

• A) labor.
• B) production.
• C) a firm's fixed factors of production.
• D) only implicit factors of production.
• E) only explicit factors of production.

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Demand Equation

A mathematical representation of the relationship between the quantity of a good demanded and various factors affecting it such as price, income, and the price of related goods.

Downsloping Demand

A concept in economics that describes the inverse relationship between the price of a good and the quantity demanded, typically illustrated by a downward-sloping demand curve.

Upsloping Supply

A supply curve that shows an increase in the quantity supplied as the price increases, typical of most goods.