Average Fixed Costs

question 73

Multiple Choice

Average fixed costs:

• A)always trend downward as output increases.
• B)always trend upward as output increases.
• C)are a constant, regardless of quantity of output.
• D)are a vertical line.

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Definitions:

Policy Rule

A guideline or protocol for economic policy that stipulates specific actions or responses to changes in economic indicators.

Monetarists' Prescription

Recommendations or policies suggested by monetarists, focusing on controlling the money supply to manage economic stability and inflation.

Monetary Rule

The money supply may grow at a specified annual percentage rate, generally about 3–4 percent.

Money Supply

The total quantity of money available in the economy at a specific time, including cash, coins, and balances held in checking and savings accounts.