Which of the Following Is True of the Average fiXed

question 15

Multiple Choice

Which of the following is true of the average fixed cost for a firm?

• A) The average fixed cost initially rises but then falls as output expands.
• B) The average fixed cost is equal to total fixed cost divided by total output.
• C) The average fixed cost remains constant as output expands.
• D) The average fixed cost is the same as the variable cost when no output is produced.

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Definitions:

Long-Term Orientation

A cultural dimension that describes a society's time horizon, focusing on future rewards, perseverance, and savings.

Legal System

The comprehensive system of rules and principles of a society that are recognized as binding and enforced by authorities.

Religious Scriptures

The sacred writings or holy texts of a religion, which convey spiritual truths, moral codes, and teachings integral to the faith's beliefs and practices.

High Uncertainty Avoidance

Describes cultures that have a low tolerance for ambiguity and uncertainty, often favoring strict rules and procedures.