Which Type of Cost Is One That Is Necessary to Start

question 5

Multiple Choice

Which type of cost is one that is necessary to start a project?

• A) Permanent
• B) Recurring
• C) Upfront
• D) Continuous

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Definitions:

Market

Any structure that allows buyers and sellers to exchange any type of goods, services, and information.

Medallions

Licenses or permits, often used in reference to the system regulating taxis where a limited number of medallions are issued, granting the right to operate a cab.

Price Floor

A government-imposed minimum price for goods or services, intended to prevent prices from falling below a certain level.

Market-clearing Price

The price at which the quantity demanded by buyers equals the quantity supplied by sellers, eliminating any surplus or shortage in the market.