Asked by
Vishal Gurung
on Dec 11, 2024Verified
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.
Verified Answer
LL
Learning Objectives
- Distinguish between fixed, variable, and total costs in the context of production.