Average fixed cost Multiple Choice declines continuously as output is expanded. keeps constant as output is expanded. increases continuously as output increases. initially declines, reaches a minimum, and then begins to increase as output increases.

Average fixed cost Multiple Choice declines continuously as output is expanded. keeps constant as output is expanded. increases continuously as output increases. initially declines, reaches a minimum, and then begins to increase as output increases.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 13SQ

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Question

Average fixed cost

Multiple Choice

declines continuously as output is expanded.
keeps constant as output is expanded.
increases continuously as output increases.
initially declines, reaches a minimum, and then begins to increase as output increases.

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Fixed costs are best defined as costs that do not vary with output. the amount that one more unit of output adds to total costs. costs that decline as output increases.
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The fixed cost per unit is equal to: Multiple choice question. average variable cost. average total cost. average fixed cost. marginal cost.
Fixed cost is Multiple Choice the cost of producing one more unit of capital, for example, machinery. any cost that does not change when the firm changes its output. average cost multiplied by the firm's output. usually zero in the short run.
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