Total Fixed Cost

question 160

Multiple Choice

Total fixed cost:

• A) is the sum of all expenses which are closely related to output.
• B) is the sum of those costs which do not change in total no matter how much is produced.
• C) may vary in the short run-but is more or less fixed in the long run.
• D) is the sum of all costs of manufacturing and distributing a product.
• E) would be zero if the quantity produced were zero.

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Definitions:

Cost Leadership Strategy

A business approach aiming to become the lowest cost producer in an industry to offer products or services at competitive prices.

Reducing Expenses

The act of cutting down on costs or spending in order to improve overall financial health.

Market Segments

Subsets of a market made up of people or organizations with one or more characteristics that cause them to demand similar product or service based on qualities of those products.

Product Prices

Product prices are the amounts sellers charge consumers to purchase goods or services.