Costs That Remain Constant on a Per-Unit Level as the Level

question 1

Multiple Choice

Costs that remain constant on a per-unit level as the level of activity changes are called:

• A) fixed costs.
• B) mixed costs.
• C) opportunity costs.
• D) variable costs.

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Definitions:

Dollar Votes

The “votes” that consumers cast for the production of preferred products when they purchase those products rather than the alternatives that were also available.

Product Market

A marketplace where final goods or services are bought and sold by consumers, businesses, and the government.

Laissez-Faire Capitalism

A hypothetical economic system in which the government’s economic role is limited to protecting private property and establishing a legal environment appropriate to the operation of markets in which only mutually agreeable transactions take place between buyers and sellers; sometimes referred to as “pure capitalism.”

Specialization

The use of the resources of an individual, a firm, a region, or a nation to concentrate production on one or a small number of goods and services.