Average Fixed Costs for a Firm Are ________

question 168

Multiple Choice

Average fixed costs for a firm are ________.

• A) greater than average total cost
• B) independent of the level of output
• C) increasing as the level of output increases
• D) decreasing as the level of output increases

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Definitions:

Credit

An arrangement where goods, services, or money is received in exchange for a promise to pay back a definite sum of money at a future date.

Annual Percentage Rate

A measure of the cost of borrowing, including interest and other fees, represented as a yearly rate and providing a comprehensive view of the loan cost.

Terms Of Sale

The conditions agreed upon by the buyer and seller covering payment, delivery, and the transfer of ownership of goods or services.

Credit

Credit refers to the trust which allows one party to provide resources to another party wherein the second party does not reimburse the first party immediately, but promises either to repay or return those resources at a later date.