A Very High Fixed Cost and a Relatively Low Marginal

question 285

Multiple Choice

A very high fixed cost and a relatively low marginal cost is associated with

• A) every type of good or product.
• B) an information product.
• C) a persuasive good.
• D) an experience good.

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Definitions:

Discount Period

The time frame during which a buyer can pay less than the full invoice amount due to early payment incentives.

Sales Tax

A government-imposed tax on sales of goods and services, typically collected at the point of sale from consumers.

Charge Customer

This involves billing a customer for goods or services rendered, resulting in an accounts receivable entry in the company's books.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered or used, but not yet paid for.