A Fixed Cost Is One That

question 14

Multiple Choice

A fixed cost is one that:

• A) does not rise as inflation changes.
• B) is the same per unit of production regardless of volume.
• C) remains constant in total within the relevant production range.
• D) increases on a per unit basis as volume increases.

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Definitions:

Price Mechanism

The method through which supply and demand dynamics set the prices for goods and services within a market-driven economy.

Five-Year Plan

Typically a government plan for economic development over a five-year period, aimed at achieving specified goals in sectors like industry, agriculture, and technology.

Fascist Economies

Economic systems under fascist regimes characterized by strong governmental control over private sector activities, often involving significant collaboration between the state and large businesses.

External Cost

Costs that are not borne by the parties involved in an economic transaction, often imposed on others in the form of environmental pollution or other negative side effects.