A(n) ________________ Is a Cost That Does Not Increase in Total

question 168

Short Answer

A(n) ________________ is a cost that does not increase in total as output increase and does not decrease in total as output decreases.

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Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Hourly Wages

The rate an employee is paid for each hour worked, often regulated by labor laws.

Guaranteed Contracts

Agreements that assure certainbenefits or compensations, often seen in professional sports and executive employment contracts, regardless of performance or circumstances.

Average Fixed Cost

The fixed expenses of a firm (costs that do not change with output level) divided by the quantity of output produced.