Figure 3-1

question 114

Multiple Choice

Figure 3-1.Total cost = Fixed cost + (Variable Rate * Output)
-Refer to Figure 3-1. In the cost formula above which element would be the dependent variable?

• A) variable rate
• B) fixed cost
• C) total cost
• D) output

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Definitions:

Total Revenue Product

The total revenue generated by a firm from selling its product, given by the quantity sold times the selling price.

Imperfect Competitor

An imperfect competitor is a firm or entity in a market structure that does not meet the criteria of perfect competition, often having some control over its prices or products.

Wage Rate

An amount of money that is paid to an employee per unit of time, commonly hourly, daily, or annually, for their labor.

Standard Oil

An American oil producing, transporting, refining, and marketing company. Established in 1870 by John D. Rockefeller and associates, controlling much of the oil industry in the U.S. until it was broken up in 1911.