Average Fixed Cost

question 93

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:

Demand Increase

A rise in the quantity of a product or service that consumers are willing and able to purchase at a given price over a certain period of time.

Usury Laws

Regulations that impose a maximum interest rate that can be charged on loans to prevent excessive and unfair interest rates.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, or the income earned on deposited funds.

Rent

A periodic payment made by a tenant to a landlord for the use of land, premises, or other property.