An Example of a Discretionary Fixed Cost Would Be

question 26

Multiple Choice

An example of a discretionary fixed cost would be:

• A)taxes on the factory.
• B)depreciation on manufacturing equipment.
• C)insurance.
• D)research and development.

---

Definitions:

Regulation

Rules or directives made and maintained by an authority to control or manage activities, often within industry sectors, for public good.

Allocative Efficiency

A state of the economy where the distribution of resources among different uses is optimal, with no one able to be made better off without making someone else worse off.

Marginal Benefits

The bonus satisfaction or utility acquired from consuming an additional unit of a product or service.

Marginal Costs

The increase in expense associated with manufacturing an additional unit of a product or service.