Average Fixed Costs

question 73

Multiple Choice

Average fixed costs:

• A)always trend downward as output increases.
• B)always trend upward as output increases.
• C)are a constant, regardless of quantity of output.
• D)are a vertical line.

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Definitions:

Resource Constraints

Limitations on the availability of resources, which can restrict output, growth, and efficiency.

Trade Between Two Countries

The exchange of goods and services across international borders between two nations, facilitating access to foreign markets and resources.

Absolute Advantage

The ability of an individual, firm, or country to produce more of a good or service than competitors using the same amount of resources.

Lower Cost

A situation where there is a reduction in the total expense required to produce goods or services.