-Refer to Exhibit 15-4

question 71

Multiple Choice

-Refer to Exhibit 15-4.In the row of this table containing blank (C) ,people are holding ______________ of their wealth in bonds and ________________ of their wealth in money.

• A) too much; too little
• B) too little; too much
• C) just the right amount; too little
• D) just the right amount; too much
• E) just the right amount; just the right amount

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Definitions:

Variable Cost

Expenses in a business that change in proportion with the volume of production or sales, such as materials and labor costs.

Total Cost

Total Cost is the complete cost of production, including both fixed and variable costs.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, showing how fixed costs per unit change with output levels.

Marginal Cost

The cost of producing one additional unit of a good or service, considering the variable costs involved.