If Average Variable Cost Is Increasing with Increases in Output,total

question 1

Multiple Choice

If average variable cost is increasing with increases in output,total fixed cost will:

• A) increase with increases in output.
• B) decrease with increases in output.
• C) remain unchanged with increases in output.
• D) increase initially and then decrease with increases in output.
• E) decrease initially and then increase with increases in output.

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Definitions:

Market Equilibrium

The price at which quantity supplied equals quantity demanded.

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Severe punishment or fine imposed for violations of laws, rules, or agreements.