A Firm's Average Fixed Cost

question 210

Multiple Choice

A firm's average fixed cost

• A)does not vary with output.
• B)decreases as output rises.
• C)is equal to average cost when average cost is minimized
• D)causes marginal cost to rise as output rises.

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Definitions:

Lump Sum

A one-time payment executed at a specific moment, unlike several payments spread out over time.

Funds

Financial resources that are allocated for a specific purpose, such as investment or operational costs.

Lump Sum

A single payment made at a particular time, in contrast to multiple payments made over time.

Investments

Assets or items acquired with the goal of generating income or appreciation over time.