INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 126

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The average cost of owning is typically much less than leasing if you own the vehicle over [two | four] years.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the

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Definitions:

Total Costs

Total costs represent the complete sum of all expenses incurred by a business in the production of goods or services, including both fixed and variable costs.

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced.

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, or property taxes, consistent regardless of business activity.

Output

Output refers to the total amount of goods and services produced by a country, company, or economic system.