As the Number of Customers Increase

question 9

Multiple Choice

As the number of customers increase

• A)The number of firms will rise in the long run
• B)The number of firms will fall in the long run
• C)The number of firms will stay the same in the long run
• D)It is impossible to tell from the information given

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Definitions:

Marginal Cost

is defined as the increase in total production cost that arises from producing an additional unit of a good or service.

TVC

Total Variable Costs, which are the sum of expenses that vary directly with the level of production or business activity.

TFC

Total Fixed Costs, which are the sum of all costs that remain constant regardless of the level of production or output.

TC

In economics, often stands for Total Cost, which is the complete cost of production including both variable and fixed costs.