In the Long Run, Total Fixed Cost

question 203

Multiple Choice

In the long run, total fixed cost:

• A) falls.
• B) rises.
• C) is constant.
• D) does not exist.

---

Definitions:

Variance

A measure of the spread between numbers in a data set, indicating how much the numbers differ from the mean.

Arithmetic Average

A statistical measure of central tendency calculated by summing a set of values and dividing by the number of values in the set.

Geometric Average

A method of calculating the average rate of return that accounts for compounding, commonly used for investment portfolios.

Total Returns

Total returns include all sources of investment return including capital gains, dividends, and interest, measured over a specific time period.