FOB and FAS Are Different Terms with the Same Meaning

question 25

True/False

FOB and FAS are different terms with the same meaning.

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Definitions:

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one additional unit of a product or service.

Total Variable Costs

The sum of all costs that vary directly with the level of production, such as materials and labor directly involved in the production process.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell.

Production Functions

Mathematical relationships expressing the output of a firm, an industry, or an entire economy as a function of inputs.