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:

Primary Motives

Fundamental drives or instincts that are necessary for survival, such as hunger, thirst, and the need for warmth.

Need for Food

The Need for Food refers to the basic physiological requirement for nutrition, which drives the behavior of eating to sustain life and energy levels.

State of Need

A psychological or physiological condition of lacking something requisite or desirable.

Drive Theory

A psychological theory that posits behavior is motivated by drives, internal states of tension that compel actions to satisfy needs.