Fixed Costs

question 34

Multiple Choice

Fixed costs:

• A)may include either direct or indirect costs.
• B)vary with production or sales volumes.
• C)can be adjusted in the short run to meet actual demands.
• D)include parts and materials used to manufacture a product.

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Definitions:

Price of Beef

The cost at which beef is sold in the market, which can vary based on factors like quality, supply, and demand.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

Supply Decreases

A reduction in the quantity of a good or service that producers are willing and able to sell at a given price.