Items Bought by Businesses to Help Produce Other Goods and Services

question 13

Multiple Choice

Items bought by businesses to help produce other goods and services are called

• A) consumption goods and services.
• B) capital goods.
• C) government goods and services.
• D) exports of goods and services.
• E) productive goods.

---

Definitions:

Cost Curves

Graphical representations of how the cost of production varies with changes in the quantity of output produced, including average and marginal costs.

Average Fixed Cost

Fixed cost divided by the level of output.

Producer Surplus

The gap between the price that suppliers are prepared to take for a product or service and the real price they get.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and free entry and exit, leading to optimal price and quantity.