A Number of the Costs of a Manufacturing Firm Are

question 166

Multiple Choice

A number of the costs of a manufacturing firm are fixed in the short run,like its building and machinery costs.Given these fixed costs,

• A)if the manufacturer were to increase production,average fixed costs would increase.
• B)these costs should be considered in a decision to increase short-run production levels.
• C)if the manufacturer were to expand production,average fixed costs would decrease.
• D)if the manufacturer decreased production,total costs would increase.

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Definitions:

Money Multiplier

The multiple by which the money supply changes as a result of a change in fresh reserves in the banking system.

Money-Creation Process

The procedure through which the banking system generates money by issuing loans greater than the amount of reserves it holds.

M1

The measure of a country's money supply that includes physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.

Bank Vaults

Secure rooms or compartments within banks where valuables, including money, documents, and other assets, are stored for protection against theft and fire.