A Fixed Cost Is

question 79

Multiple Choice

A fixed cost is:

• A)the cost of any input whose per-unit price has been fixed, whether by long-term contract or by some similar means.
• B)a cost whose increases are exactly proportional to increases in output.
• C)any component included in average cost which enters in AC as the same fixed per-unit amount, no matter what the level of plant output may be.
• D)a cost which the firm would incur even if its output were zero.
• E)none of the above.

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Definitions:

Chromium

A lustrous, hard, and brittle metallic element used in alloys to increase strength and corrosion resistance.

Krypton

A chemical element with the symbol Kr and atomic number 36, a noble gas used in lighting and photography.

Cobalt

A chemical element with the symbol Co and atomic number 27, known for its metallic properties and use in alloys and batteries.

Mixture

A combination of two or more substances in which each substance retains its chemical identity and properties.