Total fixed cost
a. increases as output increases.
b. declines as output increases.
c. is always zero.
d. remains constant even if the firm shuts down.
d
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Other things being equal, what is the effect of deficit spending on credit markets?
A) The supply of credit will increase while the demand for credit remains the same. B) The demand for credit increases while the supply of credit remains constant. C) Both the demand for credit and the supply of credit will decrease. D) Both the demand for credit and the supply of credit will increase.
"Nominal GDP" is a measure of GDP that adjusts for price changes
Indicate whether the statement is true or false
If the level of real GDP is $14 trillion while aggregate planned expenditure is $15 trillion, then
A) inventories rise more than planned, leading firms to increase production. B) real GDP increases and planned expenditure decreases reaching equilibrium in the middle. C) aggregate planned expenditure decreases to reach the equilibrium of $14 trillion. D) inventories fall more than planned, leading firms to increase production. E) inventories rise more than planned, leading firms to cut production.
When a nation exports a good, its ________ surplus increases and its ________ surplus increases
A) consumer; total B) consumer; consumer C) producer; producer D) producer; total E) total; consumer