If Output Increases

question 85

Multiple Choice

If output increases

• A) per-unit fixed cost will increase.
• B) total variable costs will increase.
• C) per-unit variable costs will increase.
• D) per-unit variable costs will decrease.

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Definitions:

Stagflation

A situation in an economy where the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high.

Output

The total amount of goods and services produced by an economy, business, or machine over a specific period of time.

Prices

The amount of money required to purchase goods or services, which can fluctuate based on demand, supply, and other economic factors.

Price Level

A measure of the average prices of goods and services in an economy at a specific time, indicating the cost of living or inflation rate.