Suppose a Firm Has $1,000,000 in Fixed Costs and Variable

question 59

Multiple Choice

Suppose a firm has $1,000,000 in fixed costs and variable costs equal to $100 for every unit they produce,

• A)their marginal costs are decreasing.
• B)their average costs are decreasing.
• C)their fixed costs are decreasing.
• D)the marginal costs are increasing.

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Definitions:

Misconduct

Improper or unlawful behavior by a person in a position of authority or trust.

Risks

The potential for loss, damage, or any other undesirable outcome resulting from internal or external vulnerabilities.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Syndicate

A group of individuals or organizations combined to promote some common interest, often in business or finance.