The costs that a firm incurs when it changes its production level are ________ costs.
A) adjustment
B) accelerated
C) sunk
D) depreciation

Question

Quizplus · Accepted Answer

When a firm changes its production level, it incurs costs to adjust its inputs such as labor, capital, and materials to produce the desired output. These costs are known as adjustment costs. The other options, such as sunk costs, depreciation, and accelerated costs, are not directly related to changes in production level.

The Costs That a Firm Incurs When It Changes Its