Average Fixed Costs

question 61

Multiple Choice

Average fixed costs

• A) will remain unchanged as output expands.
• B) are defined as the change in total costs divided by the change in output.
• C) will always increase as output increases.
• D) will always decrease as output expands.

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Definitions:

Robinson-Patman Act

A 1936 U.S. law aimed at preventing anticompetitive practices by producers, specifically price discrimination.

Suggested Retail Price

The price that manufacturers recommend retailers sell their product for to consumers, often used as a guideline rather than a strict requirement.

Labor Union

An organized association of workers formed to protect and further their rights and interests.

Boycott

An organized refusal to buy, use, or engage with a company, country, or product as a form of protest.