At the Price of $3,consumers A,B,C,and D Demand 10 Units,12

question 46

Multiple Choice

At the price of $3,consumers A,B,C,and D demand 10 units,12 units,14 units,and 8 units of commodity A respectively.Calculate the market demand for commodity A at $3 assuming that A,B,C,and D are the only four consumers of this product.

• A)44 units
• B)12 units
• C)960 units
• D)36 units

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Definitions:

Fixed Costs

Expenses that remain constant regardless of the amount of production or sales, including rent, wages, and insurance premiums.

Mixed Cost

A cost that contains both fixed and variable components and changes with the level of output but not directly in proportion.

Fixed Cost Element

A component of total costs that does not change with the level of output or activity within a certain range.

Fixed Cost

Costs that do not change with the level of manufacturing activity or output, such as rent, salaries, and insurance premiums.