Which of the Following Is an Example of a Fixed

question 29

Multiple Choice

Which of the following is an example of a fixed cost for a bridal gown shop?

• A) The services of the seamstress to fit each gown
• B) The cost associated with dying the shoes to match the bridesmaids' dresses
• C) The cost associated with the layaway of variously priced gowns
• D) The cost of the mannequin used to display current gowns
• E) The cost associated with a generous return policy

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Definitions:

Marginal Cost Curve

A graph showing how the cost of producing one more unit of a good varies as the quantity of production increases.

Short Run

in economics, refers to a period during which at least one factor of production is fixed, and firms can adjust only the variable factors.

TVC

Total Variable Cost, which refers to all variable expenses that change with the level of output.

Short Run

A period of time in economics during which at least one input is fixed, limiting the ability of the economy or firm to adjust.