The Figure Given Below Shows the Demand and Cost Curves

question 90

Multiple Choice

The figure given below shows the demand and cost curves of a perfectly competitive firm.Figure: 10.4
D: Demand curve
MC: Marginal cost curve
ATC: Average-total cost curve
AVC: Average-variable-cost curve
-In the short run, certain costs, such as rent on land and equipment, must be paid whether or not any output is produced. These are:

• A)the firm's variable costs.
• B)the firm's break-even costs.
• C)the firm's sunk costs.
• D)the firm's marginal costs.
• E)the firm's fixed costs.

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Definitions:

Flash Frozen

A process of freezing foods or substances rapidly to preserve freshness and minimize ice crystal formation.

Fixed Costs

Business expenses that remain unchanged regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales volume.

Process Configuration

The arrangement and organization of operational processes and resources in a production or service system to optimize performance.