Which of the Following Is True of Average Fixed Costs

question 94

Multiple Choice

Which of the following is true of average fixed costs in the long run?

• A)Average fixed costs start increasing.
• B)Average fixed costs are above average variable costs.
• C)There are no fixed costs in the long run, so there are also no average fixed costs in the long run.
• D)Average fixed costs intersect the marginal cost curve at its minimum point.

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Definitions:

Perceptual Process

The sequence of psychological steps that a person uses to organize and interpret information from the external world into a coherent picture.

Internal Factor

A factor that originates within an organization, individual, or system, affecting its function or behavior.

Perceptual Selection

The process of filtering information through sensory inputs, choosing what to focus on based on relevance.

Feng Shui

An ancient Chinese practice that involves arranging the pieces in living spaces to create balance with the natural world.