Which of the Following Is an Example of a Fixed

question 42

Multiple Choice

Which of the following is an example of a fixed cost?

• A)power cost in the machining department
• B)wood in the manufacture of furniture
• C)labour cost paid on a piece basis
• D)lease payments on machinery

Understand the characteristics and implications of natural monopolies.

Identify examples and reasons for government-created monopolies.

Evaluate the effectiveness and consequences of government interventions in monopoly markets.

Recognize the conditions and strategies for price discrimination by monopolists.

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Definitions:

Borrow

To receive something of value with the promise to return it or its equivalent to the lender at a future date.

Quarterly

Happening or carried out once every three months.

Future Value

The value of an investment or loan at a specified future date, taking into account factors like interest rates and compounding frequency.

Compounded Annually

A process where interest is calculated once a year on the principal amount, including any interest from previous periods, leading to compound growth.