The Average Fixed Cost Curve

question 244

Multiple Choice

The average fixed cost curve

• A)always declines with increased levels of output.
• B)always rises with increased levels of output.
• C)declines as long as it is above marginal cost.
• D)declines as long as it is below marginal cost.

Recognize the advantages and disadvantages of locating a business in a shopping center.

Understand the importance of a competitive advantage for businesses choosing stand-alone locations.

Identify the concept of anchor stores and their significance.

Acknowledge the challenges and costs of locating a business in a central business district.

---

Definitions:

Efficiency

The ratio of useful output to total input, referring to the effective use of resources without waste.

Skill-Based Pay

A compensation system that establishes pay levels based on the skills or qualifications an employee possesses, rather than the job position alone.

Quality Circle

A voluntary group of workers who perform the same or similar work, who meet regularly to identify, analyze, and solve work-related problems, aiming to improve the performance of their area and to enhance their own working lives.

Worker Involvement

The practice of involving employees in decision-making processes and operational tasks to boost morale, productivity, and engagement.