In the short run, when a firm produces 60 units of output, its total fixed cost is $120. Then the corresponding average total cost must be larger than $2.
In the short run, when a firm produces 60 units of output, its total fixed cost is $120. Then the corresponding average total cost must be larger than $2.
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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In the short run, when a firm produces 60 units of output, its total fixed cost is $120. Then the corresponding average total cost must be larger than $2.
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