Average Fixed Cost

question 117

Multiple Choice

Average fixed cost:

• A) initially declines, reaches a minimum, and then begins to increase as output increases.
• B) increases continuously as output increases.
• C) declines continuously as output is expanded.
• D) keeps constant as output is expanded.

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Definitions:

Customer Orders

Requests made by customers for a company’s goods or services, which are then fulfilled and delivered, forming the basis of the company's sales operations.

Product Life Cycle

The stages that a product goes through from introduction to growth, maturity, and eventual decline as market conditions and consumer preferences evolve.

Demand Strategy

Approaches businesses use to increase demand for their products or services, often through marketing and innovation.

Unstable

Lacking consistency or regularity; prone to sudden change or unpredictability.