The average fixed cost curve increases as output increases

Firms generally prefer not to outsource product design and manufacturing because:

a. these activities are common and standardized. b. these operations are more or less static. c. these operations involve a low investment. d. these operations require investment in highly specific assets.

A family on a trip budgets $800 for sit-down restaurant meals and fast food. If the price of a fast food meal for the family is $20, how many such meals can the family buy if they do not eat at restaurants?

a. 8 b. 15 c. 20 d. 40 e. 160