The Average Fixed Cost for a Firm

question 14

Multiple Choice

The average fixed cost for a firm

• A) is constant at all levels of output.
• B) is increasing over all levels of output.
• C) first increases at an increasing rate and then declines.
• D) first decreases and then increases as output increases.
• E) is decreasing over all levels of output.

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Definitions:

Fortune 500

An annual list compiled and published by Fortune magazine that ranks 500 of the largest U.S. corporations by total revenue for their respective fiscal years.

Total Losses

The complete financial loss associated with an investment, project, or business activity, where no returns are recovered.

Losses

The negative financial result from business activities when costs exceed revenues.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period.