Which of the Following Is True About Average Fixed Cost

question 15

Multiple Choice

Which of the following is true about average fixed cost?

• A) Average fixed cost has a U-shape, and marginal cost crosses average fixed cost at its minimum point.
• B) Average fixed cost does not vary as output increases.
• C) Average fixed cost is the difference between marginal cost and average total cost.
• D) Average fixed cost is total fixed cost divided by the quantity of output produced, and it declines steadily as output increases.

Learn how to manage and optimize Excel workbook performance.

Recognize the tools available for inserting and editing various chart elements in Excel.

Understand how to use Excel to project future data trends.

Grasp the concept and application of conditional formatting and calculations.

---

Definitions:

System Capacity

The maximum output or performance level that a system can handle, which can refer to organizations, networks, or technical systems.

Nonprofit's System

A nonprofit's system comprises the organizational structures, processes, and practices that enable a nonprofit organization to pursue its mission effectively.

Nonprofit Lifecycle

The nonprofit lifecycle describes the stages of development through which a nonprofit organization progresses, including startup, growth, maturity, and possibly decline or renewal.

Animal Capacity

The maximum number of animals that a facility or environment can support sustainably, taking into account space, resources, and care standards.