Fixed Cost Contribution Equals

question 132

Multiple Choice

Fixed cost contribution equals:

• A) price times the average fixed cost
• B) price plus the average variable cost
• C) average variable cost plus average fixed cost
• D) break-even quantity times price
• E) price minus the average variable cost

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Definitions:

Intercropping

An agricultural practice that involves growing two or more crops in proximity for purposes such as pest control, pollination, and to increase productivity.

Alfalfa

A leguminous plant with clover-like leaves and bluish flowers, widely grown as forage for cattle and as a nitrogen-fixing crop, enriching soil fertility.

Subsistence Agriculture

Farming practices aimed at self-sufficiency, producing enough food for the farmer's family, with little to no surplus for trade.