Average Fixed Cost (AFC)

question 102

Multiple Choice

Average fixed cost (AFC)

• A)rises as output rises.
• B)rises as output falls.
• C)falls as output falls.
• D)is always fixed across all output ranges for the given production function.

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Definitions:

Advertising

The action of calling public attention to products, services, needs, etc., especially by paid announcements in print, broadcast, or online media.

Demand Curve

A graph representing the relationship between the price of a good and the quantity demanded by consumers, typically downward-sloping.

Brand Loyalty

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Elasticity of Demand

A measure of how much the quantity demanded of a good changes in response to a change in the price of that good.