The Average Fixed Costs of a Firm Equal

question 119

Multiple Choice

The average fixed costs of a firm equal

• A) implicit costs divided by output.
• B) explicit costs divided by output.
• C) total cost minus variable cost.
• D) (total cost minus variable cost) divided by output.

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Definitions:

Depreciation Expense

Distributing the expense of a physical asset throughout its lifespan.

Accrue Interest Expense

The recording of interest expense that has been incurred but not yet paid, typically on borrowed funds.

Financial Statements

These are formal records that outline the financial activities and condition of a business, entity, or individual.

Net Income

The final profit figure for a company, calculated by subtracting all expenditures and taxes from revenues.