Total Fixed Cost Falls as Output Expands

question 49

True/False

Total fixed cost falls as output expands.

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Definitions:

Gross Investment

The total amount spent on new capital assets before accounting for depreciation, representing investment in expanding productive capacity.

Depreciation

The process by which assets lose value over time due to wear and tear or obsolescence.

Savings

The portion of an individual's or entity's income that is not spent on current expenditures and is instead reserved for future use or investment.

Disposable Income

Money available to families for savings and expenses after accounting for income taxes.