If you are calculating it correctly, what should happen to AVERAGE fixed cost per pizza as you produce more and more pizza? O It should stay the same because fixed costs never change so fixed cost per pizza will not change. O It will decrease as fixed costs are spread out over a larger and larger number of pizzas produced. No idea.

If you are calculating it correctly, what should happen to AVERAGE fixed cost per pizza as you produce more and more pizza? O It should stay the same because fixed costs never change so fixed cost per pizza will not change. O It will decrease as fixed costs are spread out over a larger and larger number of pizzas produced. No idea.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 19RQ: What shapes would you generally expect each of the following cost curves to have: fixed costs,...

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Similar questions

Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
How does fixed cost affect marginal cost? Why is this relationship important?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
Are fixed costs also sunk costs? Explain.
What is the difference between a fixed input and a variable input?
How do we calculate each of the following: marginal cost, average total cost, and average variable cost?