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If Actual Output Is Greater Than Equilibrium Output,firms Will ________

question 50

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If actual output is greater than equilibrium output,firms will ________ output to keep from ________ inventories.


Definitions:

Fixed Cost

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

Total Output

Total output is the complete quantity of goods or services produced by an economy, firm, or production process within a specific period.

Marginal Cost

The additional cost incurred by producing one more unit of a product.

Average Variable Cost

The per unit cost of production excluding fixed costs, calculated by dividing the total variable costs by the quantity of output produced.

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