Which of the Following Is a Typical Example of a Variable

question 181

Multiple Choice

Which of the following is a typical example of a variable cost?

• A)rent on a building
• B)executive salaries
• C)insurance premiums
• D)lease on delivery trucks
• E)cost of maintaining inventory

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Definitions:

Comparative Advantage

The skill of an entity—be it an individual, a company, or a country—to deliver a good or service more efficiently, incurring lower opportunity costs, than competing parties.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than the competition.

Orange Production

The production process of growing and harvesting oranges, primarily for consumption as fruit or for juice production.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.