On the Crossover Chart Where the Costs of Two or More

question 2

Multiple Choice

On the crossover chart where the costs of two or more location alternatives have been plotted,the quantity at which two cost curves cross is the quantity at which:

• A)fixed costs are equal for two alternative locations.
• B)variable costs are equal for two alternative locations.
• C)total costs are equal for all alternative locations.
• D)fixed costs equal variable costs for one location.
• E)total costs are equal for two alternative locations.

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Definitions:

Federal Funds Rate

The interest rate at which depository institutions lend reserve balances to other depository institutions overnight, on an uncollateralized basis.

Required Reserves

The minimum amount of funds that banks must hold in reserve against deposits, as mandated by the central bank.

Clear

To settle or resolve a transaction, debt, or other financial activity, ensuring that all obligations have been fulfilled.

Liabilities

Financial obligations or debts owed by an individual, business, or organization to others.