If Total Costs Are $80,000 at an Output of 12,000

question 30

Multiple Choice

If total costs are $80,000 at an output of 12,000 units and $95,000 at 15,000 units,fixed costs are:

• A) $15,000.
• B) $10,000.
• C) $5,000.
• D) $20,000.

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Definitions:

Short-run Phillips Curve

A curve illustrating the inverse relationship between the rate of inflation and the rate of unemployment in an economy for a short-term period.

Expected Inflation

The rate at which consumers, businesses, and investors expect prices to rise over a future period.

Long-run Phillips Curve

The long-run Phillips Curve is an economic concept that illustrates the relationship between inflation and unemployment, suggesting that in the long run there is no trade-off between these two factors.

Potential Output

The upper limit of real GDP sustainable over an extended period without inflating the inflation rate.