Answer the following:

1. Cost are those cost which in total do not vary with changes in output?

2. In order to maximize profits, a firms tries to increase its _______ and lower its cost.

3. cost are expenses that varies with the volume of production output.

4. The sum of variable costs and fixed cost.

5. If an increase in the price of a substitute leads to _____ in quantity demanded, the cross price elasticity of demand is ____.

6. If an increase in the price of a substitute leads to _______ in quantity demanded, the price elasticity of demand is _______.

7. When demand is price inelastic, what is the relationship between price and total revenue?

8. Setting a price abnormally low to put a competitor out of business or discourage potential competitors from entering your market.

9. Products and services that are viewed as high quality by customers.

10. Prices designed to clear inventory that is unpopular or soon to be out of season.

11. A price set by a high quality or product service that has a strong customer demand.

12. _____ cost are the sum of _____ cost and fixed cost.