The Cost of Steel and Tires to an Automobile Manufacturer

question 80

True/False

The cost of steel and tires to an automobile manufacturer is an example of a direct cost.

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Definitions:

Competitive Firms

Companies that operate in a market where there are many buyers and sellers, such that no single entity can dictate the market price of goods and services.

Price

The monetary value that must be paid to secure a good or service.

Product

Anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

Total Revenues

The total income generated from the sale of goods or services before any costs are subtracted.