Even though fixed costs do not affect the output decision, an increase in fixed costs results in a wider range of prices for which the firm operates at a loss
Indicate whether the statement is true or false
True . An increase in fixed costs will shift AC upward but leave AVC unchanged. The gap between AVC and AC represents prices at which the firm will operate at a loss.
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A drawback in using the payback approach to capital budgeting decisions is
A) it doesn't account for the time value of money. B) it ignores cash flows beyond the payback period. C) it doesn't adjust for differences in the stream of cash flows. D) All of the above
Government intervention in the economy with the goal of promoting technology-producing industries is known as patent policy
a. True b. False Indicate whether the statement is true or false
A profit-maximizing firm in a competitive market is able to sell its product for $7 . At its current level of output, the firm's average total cost is $10 . The firm's marginal cost curve crosses its marginal revenue curve at an output level of 9 units. The firm experiences a
a. profit of more than $27. b. profit of exactly $27. c. loss of more than $27. d. loss of exactly $27.
The Social Security system was founded
A. as the United States began to recover from the Great Depression. B. during the last years of the nineteenth century, as people who had once depended on having a family farm found themselves without a means of support. C. during the Civil War, to pay pensions for veterans. D. in response to concerns that arose during the high inflation of the 1970s.