Fixed Costs Are

question 39

Multiple Choice

Fixed costs are

• A) a production expense that does not vary with output.
• B) a production expense that changes with the quantity of output produced.
• C) equal to total cost divided by the units of output produced.
• D) the amount by which a firm's cost changes if the firm produces one more unit of output.

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Definitions:

Free World Trade

The international exchange of goods and services without restrictive tariffs, quotas, or other trade barriers.

Tariffs and Quotas

Tools used by governments in international trade policy; tariffs are taxes on imported goods, while quotas are limits on the quantity of goods that can be imported.

Agricultural Imports

Goods related to agriculture brought into a country from abroad.

Food, Conservation, and Energy Act

A comprehensive piece of legislation passed by the United States Congress to address issues related to agriculture, nutrition, conservation, and energy.