When Businesses Accept Payment by Credit and Debit Cards,the Costs

question 52

True/False

When businesses accept payment by credit and debit cards,the costs of processing fees are greater than the benefits of transferring the risk of not being able to collect from the customer and avoiding the costs associated with credit customers.

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Definitions:

Average Variable Cost

The sum of all costs that fluctuate with production volume, divided by the total amount of goods produced.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to changes.

Variable Factors

Inputs to production that can be adjusted in the short term, such as labor and raw materials.

Fixed Costs

Expenses that do not change with the level of output, such as rent or salaries.