Average Fixed Cost

question 93

Multiple Choice

Average fixed cost

• A)equals marginal cost when average total cost is at its minimum.
• B)may be found for any output by adding average variable cost and average total cost.
• C)graphs as a U-shaped curve.
• D)declines continually as output increases.

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Definitions:

Minimize Costs

Refers to the process of reducing expenses or outlays in order to achieve financial efficiency or budgetary goals.

Population

Any well-defined group of people (or things) that researchers want to know something about.

Researchers

Individuals who conduct systematic investigations to establish facts or principles or to collect information on a subject.

Sample

A group of people (or things) that are representative of the population that researchers want to study.