A Firm with Fixed Costs Produces at the Lowest Point

question 135

Multiple Choice

A firm with fixed costs produces at the lowest point on its U-shaped average variable cost curve. If it raises output by 1 unit, then average

• A) fixed cost will increase.
• B) total cost will decrease.
• C) fixed cost will necessarily be below average variable cost.
• D) total cost will be less than average variable cost.

---

Definitions:

Categorical Propositions

Categorical propositions are statements that assert or deny something about a category or class of objects, often structured in terms of all, no, or some.

Standard Form

A conventional or widely accepted way of presenting something, usually in a formal or structured manner.

Content

The information, subjects, or thematic elements contained within a work or conveyed by a message.

Standard Form I

Generally refers to a universally accepted or conventional format or structure for a particular type of document or argument, though without more context, its specific application in this case is unclear.