If Output Decreases

question 106

Multiple Choice

If output decreases

• A) total fixed costs will remain the same.
• B) total variable costs will increase.
• C) per-unit fixed costs will decrease.
• D) All of these are correct.

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Definitions:

World Price

The internationally determined price of a good or service, influenced by global supply and demand factors.

Import or Export

Imports are goods and services brought into a country from abroad for sale, while exports are goods and services produced domestically and sold to foreign countries.

World Price

A product or service's worldwide market value, affected by the international balance of supply and demand.

Importer or Exporter

An entity that buys goods and services from a foreign country (importer) or sells them to a foreign country (exporter).