Average Fixed Cost

question 180

Multiple Choice

Average fixed cost

• A)is greater at lower levels of output than at higher levels.
• B)does not change as output changes.
• C)exists only in the short run.
• D)is usually greater at higher levels of output than at lower levels of output.
• E)a and c

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good or service varies with the quantity produced.

Retail Coffee Price

The price at which coffee is sold to consumers in stores, cafes, or online platforms, reflecting the end cost including production, transportation, and markup.

Optimal Transfer Price

The price that optimizes the overall profit of a company with divisions, ensuring efficient resource allocation within the company.

Marginal Cost

The incremental cost of producing one more unit of a good or service.