Which of the Following Is an Example of a Step-Fixed

question 39

Multiple Choice

Which of the following is an example of a step-fixed cost?

• A)cost of disposable surgical scissors,which are purchased in increments of 100
• B)cost of soaking solution to clean jewellery (each jar can soak 50 rings before losing effectiveness)
• C)cost of tuition at $300 per credit hour up to 15 credit hours (hours taken in excess of 15 hours are free)
• D)cost of disposable gowns used by patients in a hospital

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Definitions:

Price-Discriminating Monopolist

A monopolist that charges different prices to different consumers for the same product, based on their willingness to pay, to maximize profits.

Absolute Value

The value of a number excluding its sign, ensuring it is not negative.

Different Prices

Different prices refer to varying costs for goods or services, often based on factors such as location, demand, and quality.

Markets

Systems, institutions, procedures, social relations, and infrastructures whereby parties engage in exchange, buying and selling goods, services, or information.