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:

Particular Purpose

A specific objective or intended use for which something is designated or implemented.

Implied Warranty of Merchantability

A legal assumption that the goods sold meet certain quality standards, including that they are reasonably fit for their ordinary purpose.

Express Warranty

An explicit promise or assurance made by a seller about the condition, functionality, or quality of a product.

Sales Transaction

The process of exchanging a good or service for payment between a buyer and a seller.