As Output Increases, Average Fixed Costs

question 272

Multiple Choice

As output increases, average fixed costs

• A) decrease.
• B) initially decrease and then increase.
• C) remain constant.
• D) increase.

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Definitions:

Equilibrium

A condition or state where all acting influences are balanced, particularly in a market when supply equals demand.

Penalty Kick

A penalty kick in economics might refer metaphorically to an opportunity to score or gain significantly with little opposition, though it's primarily a sports term.

Probability of Success

A quantitative measure expressing the likelihood of achieving a specified outcome or reaching a goal.

Probability of Failure

The likelihood that a system or component will fail to perform its intended function within a specified period.