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Vishal Gurung
on Dec 11, 2024

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In the short run, the firm's average fixed costs

A) always increase as output increases.
B) always decline as output increases.
C) equal zero.
D) remain constant as output expands.

Average Fixed Costs

The total fixed costs associated with production (costs that do not change with output) divided by the quantity of output produced.

Output Increases

A rise in the quantity of goods or services produced by a company or economy.

  • Distinguish between fixed, variable, and total costs in the context of production.
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Laura LunsfordDec 17, 2024
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