Average Fixed Cost

question 77

Multiple Choice

Average fixed cost

• A) equals marginal cost when average total cost is at its minimum.
• B) may be found for any output by adding average variable cost and average total cost.
• C) graphs as a U-shaped curve.
• D) declines continually as output increases.

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Definitions:

Reverse Causality

A situation in research or analysis where the direction of cause-and-effect is opposite to what is commonly presumed or is being investigated.

A Priori Causal Theory

Knowledge or reasoning based on theoretical deduction rather than empirical evidence, used to speculate about causes.

Dependent Variable

The variable in an experiment that is being tested and measured, often seen as the outcome or effect in a study.

Independent Variable

In experimental research, the variable that is manipulated by the researcher to examine its effect on the dependent variable.