Average Fixed Cost (AFC)

question 96

Multiple Choice

Average fixed cost (AFC)

• A)is the fixed cost divided by the average sales price of the final good.
• B)is the fixed cost divided by the quantity of output produced.
• C)is $0 when no output is produced.
• D)is always less than average variable cost (AVC).

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Definitions:

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The international exchange of goods, services, and capital, encompassing the full extent of activities and operations across countries.

Direct Investment

A form of investment where a company or individual acquires a controlling interest in a foreign business entity, often by purchasing its assets or shares.

Car-Manufacturing Facilities

Factories or plants where automobiles are produced, involving assembly lines and complex machinery.

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Workforce or labor force in the United States, often focusing on aspects related to employment conditions, rights, and unions.