Which of the Following Is a Fixed Cost of Producing

question 51

Multiple Choice

Which of the following is a fixed cost of producing sweatshirts?

• A) Wages of production workers.
• B) Salary of the factory supervisor.
• C) Cost of cotton and polyester cloth used in shirts.
• D) Lubricants cost for sewing machines.

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Definitions:

Perceived Market

The segment of a market that consumers are aware of or have a particular perception about, which may influence their purchasing decisions.

Pareto Efficient

A scenario in which it is impossible to improve the status of any individual or preference without adversely affecting at least one other individual or preference.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction in which they were not involved, such as pollution.

Positive Externalities

Benefits that affect parties who did not choose to incur that benefit.