As the output produced by a firm increases, the average fixed cost:
a. continues to decline.
b. initially increases, and then declines.
c. quickly drops to zero.
d. becomes constant.
e. declines and finally becomes negative.
a
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When external benefits exist, which of the following can produce the efficient amount of output?
I. vouchers II. private subsidies III. taxes IV. marketable permits. A) I and II only B) I and III only C) II and IV only D) III and IV only
If the balance on the current account in the United States is $750 billion, which of the following is most likely to be true?
A) The balance on the financial account is negative. B) The trade balance is negative. C) The balance on the capital account is positive. D) Net foreign investment is negative.
Explain the theory of optimum currency areas
What will be an ideal response?
Which economic concept explains why a large drugstore chain can produce at a lower average cost than Whoville Pharmacy, an individually owned drugstore?
a. increasing marginal returns b. diminishing marginal returns c. economies of scale d. diseconomies of scale e. constant returns to scale