If Total Fixed Cost Increases,which of the Following Will NOT

question 221

Multiple Choice

If total fixed cost increases,which of the following will NOT change?

• A) total cost
• B) average fixed cost
• C) marginal cost
• D) average total cost
• E) ALL costs increase when total fixed cost increases.

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Definitions:

Inventory Holdings

The quantity and value of goods a company has in stock or in a warehouse, ready for sale or distribution.

Marketable Securities

Financial instruments that can be easily sold or converted to cash without a significant loss in value.

Restrictive Policy

A policy designed to limit or control certain actions, often used in the context of monetary or fiscal policy to control inflation or regulate the economy.

Frequent Cash-Outs

Regular transactions where cash is withdrawn from a company's account, potentially affecting its liquidity or cash reserves.