A Fixed Asset Is Defined as an Asset Which

question 4

Multiple Choice

A fixed asset is defined as an asset which:

• A)The firm intends to use for an extended period
• B)The firm intends to keep for the foreseeable future
• C)Will be sold in more than 12 months after refurbishment
• D)Has been owned by the firm for a long time

---

Definitions:

Output

The amount of goods or services produced by a person, machine, factory, or entire economy in a certain period.

Returns To Scale

A concept in economics that describes how the output of a production process changes as the scale of production inputs changes.

Production Function

A mathematical model that describes the relationship between inputs used in production and the resultant output.

Isoquant

An isoquant is a curve depicting all combinations of inputs which produce the same level of output, used in the study of production theory.