A Garage Band Gets Together Every Week to Practice

question 104

Multiple Choice

A garage band gets together every week to practice. The members typically argue about musical style and what to play. They recently found out that they would be playing a big show in a few weeks, so they put aside their differences. This will cause their potential performance to ________.

• A) stay the same
• B) match actual performance
• C) decrease
• D) increase

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Definitions:

Average Fixed Cost

The constant expenses associated with production, when divided by the volume of goods produced, reduce as the production volume goes up.

Instructional Modules

Structured units designed to provide education on a particular topic, often part of a larger course or curriculum.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent or salaries.

Average Fixed Cost

Unchanging production costs (which do not fluctuate with production levels) divided by the output quantity.