An Example of a Discretionary Fixed Cost for a Clothing

question 65

Multiple Choice

An example of a discretionary fixed cost for a clothing manufacturer is

• A)An annual contract for television advertising cost.
• B)A 10-year lease on an office building.
• C)Yards of fabrics used.
• D)None of these ans choices are correct.

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Definitions:

Natural Rate

The level of any economic factor, such as unemployment or interest rates, that is unaffected by short-term fluctuations and is determined by long-term factors.

Aggregate-Supply Curve

A curve that shows the quantity of goods and services that firms choose to produce and sell at each price level

Trade-Off

An exchange where getting something of value requires giving up something else of value, typically used in the context of making decisions with limited resources.

Short Run

A period during which at least one of a firm's inputs is fixed and cannot be changed.