Which of These Would Be Considered a Fixed Cost

question 28

Multiple Choice

Which of these would be considered a fixed cost?

• A)Cost of fuel for a transport company.
• B)Laundry costs to wash towels used by a hairdresser.
• C)Insurance premium.
• D)Materials used in production.

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Definitions:

Arousal Theory

A theory suggesting that people are motivated to maintain an optimal level of arousal, which varies from one individual to another.

Optimal Point

The most favorable condition or level for growth, yield, or efficiency.

Motivation

The psychological processes that arouse and direct goal-directed behavior, stemming from internal or external factors.

Intrinsic Motivation

refers to the internal drive to engage in an activity for its own sake, deriving satisfaction and fulfillment from the activity itself rather than from external rewards or pressures.