## Understanding Fixed Costs**Fixed Costs** are expenses that:### Multiple Choice- **Option A:** Do not change as production changes. - **Option B:** They are usually contractual obligations such as a fixed rate commercial mortgage loan or installment car loan payments. - **Option C:** The electricity bill is a fixed cost. - **Option D:** Both A and B are correct.### ExplanationFixed costs are financial obligations that remain constant regardless of the level of production or business activity. Examples include rent, salaries, and certain types of loan payments. These costs do not fluctuate with the quantity of goods or services produced.### NoteUnderstanding fixed costs is crucial for budgeting and financial planning within a business, as they represent expenditures that must be met irrespective of business performance.

Fixed cost are the cost that do not depend on level of production

Answered: Fixed Costs are expenses that: Multiple…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Which of the following is not considered an operating expense? FOB destination Cost of goods sold Advertising expense Administrative expense
When the production starts, the value of Total fixed cost is 0 True/False
Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.
(a) A manufacturer has a fixed cost of $2200 and a production cost of $ 60 for each unit produced. The price-demand function was determined to be p(x)=800-2x. (i) Derive the cost function, C(x). (i) Find the revenue function, R(x).
The curve connecting cost minimization levels of output is : a always a straight line b typically downward sloping c called firms expansion path d typically horizontal e typically vertically
If he wants the average cost of production to be $1, how many lures would he e) have to produce in one month? e)_ If he wants to make a profit of at least $4000 per month, what is the f) minimum number of lures he would have to produce if he sells every lure he produces for $4? f)_
Problem One: The fixed cost for a company is 1200 OMR and the variable cost is 2 OMR per 100 unit. If demand function is given by p I. Determine the quantity that the company must sell to cover the fixed costs.
Which is not a fixed cost? Group of answer choices an insurance premium of $50 per year, paid last month. monthly rent of $1,000 contractually specified in a one-year lease. a worker's wage of $15 per hour. an attorney's retainer of $50,000 per year.

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Fixed Costs are expenses that: Multiple Choice Do not change as production changes. They are usually contractual obligations such as a fixed rate commercial mortgage loan or installment car loan payments. The electricity bill is a fixed cost. Both A and B are correct.