Examlex

Solved

As Production Increases,what Would You Expect to Happen to Fixed

question 94

Multiple Choice

As production increases,what would you expect to happen to fixed costs per unit?


Definitions:

Economies of Scale

Advantages in terms of costs that companies realize by enlarging their scale of operations, with the unit cost of production generally falling as the scale increases.

Total Product

The overall quantity of output that a firm produces, usually within a given period of time, based on the input of resources.

Marginal Product

The additional output that is produced by employing one more unit of a particular input, such as labor or capital.

Average Product

The output per unit of input, calculated by dividing total output by the total amount of input used.

Related Questions