With a Step Fixed-Cost Function ________

question 180

Multiple Choice

With a step fixed-cost function ________.

• A) the cost varies with the changes in the activity
• B) fixed cost is often approximated with a continuous variable-cost function
• C) fixed cost changes proportionally with the level of activity
• D) the cost remains the same over wide ranges of the activity in each relevant range

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Definitions:

Services

Intangible products such as healthcare, education, and financial advising that are consumed at the point of delivery and do not result in ownership of physical goods.

Supply

The total amount of a specific good or service that is available to consumers, often influenced by price levels.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price points within a certain period.

Good

A tangible product or item that satisfies some human want or need and is often traded, sold, or bought in an economy.