Average Fixed Costs

question 13

Multiple Choice

Average fixed costs

• A)increase as the quantity produced increases.
• B)decline for a while as output increases and then begin to rise again.
• C)decrease steadily as output increases.
• D)are less than average variable costs at all output levels.
• E)None of these answers is correct.

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Definitions:

Recent University Graduates

Individuals who have completed their degree or diploma courses from a university or college and have just entered the job market.

Compensation System

An organized approach implemented by businesses to pay and reward employees for their contributions to the organization.

Pension Plans

Retirement plans funded by employers or employees where regular payments are made to beneficiaries during their retirement years.

Outsourcing

The practice of hiring third parties to perform services, handle operations or provide goods that are either cost-prohibitive or outside the company's core competencies.