For Most Products, A(n) ____ Relationship Exists Between the Price

question 189

Multiple Choice

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.

• A) inelastic
• B) inverse
• C) positive
• D) unknown
• E) elastic

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Definitions:

Average Fixed Cost

The fixed cost divided by the quantity of output, representing the fixed cost per unit of output.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or output in a business.

Variable Costs

Costs that change in proportion to the good or service that a business produces.

Fixed Costs

Expenses that do not change with the amount of goods or services produced by a business.