Average Fixed Costs of Production

question 55

Multiple Choice

Average fixed costs of production

• A)remain constant.
• B)will rise at a fixed rate as more is produced.
• C)graph as a U-shaped curve.
• D)fall as long as output is increased.

---

Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in market stability.

Inelastic Demand

Inelastic demand occurs when consumers' purchase quantity does not significantly change in response to a change in the price of the product.

Bovine Infertility

The inability of cows to conceive and produce offspring.

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply at each price.