Other Things Equal, If the Fixed Costs of a Firm

question 99

Multiple Choice

Other things equal, if the fixed costs of a firm were to increase by $100,000 per year, which of the following would happen?

• A)Marginal costs and average variable costs would both rise.
• B)Average fixed costs and average variable costs would rise.
• C)Average fixed costs and average total costs would rise.
• D)Average fixed costs would rise, but marginal costs would fall.

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Definitions:

Active Listening

Making a conscious effort to turn off filters and biases to truly hear and understand what someone is saying.

Nonverbal Signal

A form of communication without words, such as gestures, facial expressions, and body language, that conveys a message.

Intensity Of Feelings

A measure of the strength or depth of emotions associated with an experience or expression.

Facial Expression

The use of facial muscles to convey emotions, reactions, or intentions, often an important aspect of non-verbal communication.