Assume Actual Output Exceeds the Level of Output in the Original

question 42

Multiple Choice

Assume actual output exceeds the level of output in the original budget.Costs in which of the following categories will exceed the original budget?

• A)total variable costs
• B)committed fixed costs
• C)discretionary fixed costs
• D)all of the above

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Definitions:

Factor Endowments

The quantity and quality of labor, land, and capital that a country possesses, which determine its potential for producing goods and services.

Labor

Human endeavors, involving both bodily and mental work, employed in generating goods and offering services.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as forests, minerals, and water.

Domestic Price

The price of goods or services within a country's borders, as opposed to international or import/export prices.