Average Fixed Cost Is Equal to

question 132

Multiple Choice

Average fixed cost is equal to

• A)the amount of total cost that does not change as output changes in the short run.
• B)fixed cost divided by the quantity of output produced.
• C)fixed cost multiplied by the quantity of output produced.
• D)average total cost plus average variable cost.

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Definitions:

Taste-For-Discrimination Model

A theoretical model that explains how discrimination can affect economic decisions and outcomes by assuming some agents have a 'taste' or preference for discriminating against certain groups.

Wages

Compensation given to employees for their work, often determined by the hour, day, or by the amount of work completed.

Labor Force

The labor force comprises all the working-age population that is either employed or actively seeking employment.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.