Exhibit 8-5 -If Average Fixed Cost Is Falling with Increasing Output, Then

question 109

Multiple Choice

Exhibit 8-5
-If average fixed cost is falling with increasing output, then

• A)marginal cost must be increasing.
• B)average total cost must be decreasing.
• C)average variable cost must be decreasing.
• D)total fixed cost must be constant.
• E)marginal cost must be decreasing.

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Definitions:

Convenience Store

A small retail business that sells everyday items such as groceries, snacks, and beverages, often with extended operating hours for customer convenience.

Target of Robbery

The specific person, group, or location that is the intended victim of a robbery.

Neighboring Stores

Retail locations situated next to each other, potentially influencing each other's customer flow and business performance due to proximity.

Surveillability

The ability or extent to which activities, behaviors, or information can be monitored, watched, or observed.