Other things equal, if the fixed costs of a firm were to increase by $100,000 per year, which of the following would happen?
A. Marginal costs and average variable costs would both rise.
B. Average fixed costs and average variable costs would rise.
C. Average fixed costs would rise, but marginal costs would fall.
D. Average fixed costs and average total costs would rise.
Answer: D
Economics
You might also like to view...
Marginal utility theory shows us that water, which is very common, has a ________ marginal utility and a ________ total utility
A) small; large B) large; small C) large; large D) small; small
Economics
When the social costs exceed the private costs, economists state that there is
A) a positive externality. B) an underproduction of output. C) a negative externality. D) social appreciation of resources.
Economics