As a firm increases the level of output that it produces, short-run average fixed cost
A) rises and then falls.
B) remains constant since fixed costs are constant.
C) decreases.
D) decreases up to a particular level of output and then increases.
Answer: C
Economics
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The quantity supplied of a good:
A) is inversely related to the price of the good. B) is determined irrespective of the market price. C) is always equal to the quantity demanded of the good. D) is the amount of the good that sellers are ready to supply at a given price.
Economics
Refer to the figure above. What is the gain in the market-wide consumer surplus when the price of calculators changes from $6 to $3?
A) $565 B) $580 C) $950 D) $1050
Economics