The Difference Between Variable Cost and Fixed Cost Is That

question 43

True/False

The difference between variable cost and fixed cost is that the cost amount fluctuates differently based on how many units are sold.

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Definitions:

Perfectly Inelastic Demand

Product or resource demand in which price can be of any amount at a particular quantity of the product or resource that is demanded; when the quantity demanded does not respond to a change in price; graphs as a vertical demand curve.

Perfectly Elastic Demand

Product or resource demand in which quantity demanded can be of any amount at a particular product or resource price; graphs as a horizontal demand curve.

Graphed

A method of representing data visually using charts or plots to illustrate relationships between different variables.

Price Elasticity of Supply

A measure of how much the quantity supplied of a good responds to a change in its price.