The Following Information Is Available for Electricity Costs for the Last

question 112

Multiple Choice

The following information is available for electricity costs for the last six months of the year:
$$\begin{array} { l c c } \text { Month } & \text { Production Volume } & \text { Electricity Costs } \\\hline\text { July } & 1,400 & \$ 2,200 \\\text { August } & 2,800 & 5,400 \\\text { September } & 3,200 & 5,700 \\\text { October } & 1,750 & 3,900 \\\text { November } & 1,200 & 2,400 \\\text { December } & 2,100 & 4.050\end{array}$$
-Refer to the figure.What are the fixed costs?

• A)$100
• B)$200
• C)$420
• D)$5,400

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Definitions:

Competitive Process

The dynamic system in which businesses compete with one another for resources, customers, and market share.

Cost Advantages

Refers to the benefit a company has over its competitors in terms of lower production or operation costs.

Monopoly Power

The ability of a single firm or entity to control the market for a good or service, enabling it to influence prices and production levels.

Legal Barriers

Restrictions imposed by law that limit the entry of new firms into an industry or protect existing firms from competition.