Which of the Following Statements Is TRUE with Respect to Total

question 217

Multiple Choice

Which of the following statements is TRUE with respect to total fixed costs?

• A)They will increase as production decreases within the relevant range.
• B)They will remain the same as production levels change within the relevant range.
• C)They will decrease as production increases within the relevant range.
• D)They will decrease as production decreases within the relevant range.

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Definitions:

Price of Capital

This entails the expenses linked to acquiring and utilizing capital goods, such as machinery, indicating the return investors demand for use of their capital.

Cost-Minimizing

A strategy or process of finding the most efficient way to produce goods or services at the lowest possible cost.

Inputs

The resources (such as labor, capital, materials, and energy) used in the production process to produce goods and services.

Marginal Product

The increase in output that results from employing one more unit of a factor of production, holding all other factors constant.