Refer to the Following Break-Even Chart to Answer the Question(s)below

question 50

Multiple Choice

Refer to the following break-even chart to answer the question(s) below:

-The area labeled ________ represents the firm's fixed expenses, while ________ represents its variable expenses.

• A)Z; W
• B)X; Y
• C)Y; X
• D)W; Z

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Definitions:

Intermediate Goods

Products that are used as inputs in the production of other goods or services rather than being bought by consumers.

Final Output

The total value of all goods and services produced and sold for final use in the economy, avoiding duplication by excluding intermediate goods.

Durable Goods

Items with a long life span, such as appliances and automobiles, that are used over time rather than consumed quickly.

Intermediate Good

A product utilized in the manufacture of a final good or finished product, not sold directly to end consumers.