Asked by
Frenly Olivares
on Dec 04, 2024
Verified
Which of the following costs always declines as output increases?
A) Average cost
B) Marginal cost
C) Fixed cost
D) Average fixed cost
E) Average variable cost
Fixed Cost
A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.
Marginal Cost
The escalation in the entire cost linked to the output of an additional unit.
Average Cost
The cost per unit is determined by dividing the overall production cost by the total units produced.
- Understand and evaluate mean, boundary, unchanging fixed, and modifiable variable expenses.
Verified Answer
AL
Learning Objectives
- Understand and evaluate mean, boundary, unchanging fixed, and modifiable variable expenses.