Questions
ECON1001 (ND) Quiz #1 (Early Feedback Task)
Single choice
Averaged fixed costs for a firm:
Options
A.are constant with increasing output q
B.are always lower than average variable costs
C.are always decreasing with increasing output q
D.are the reason ATC are eventually increasing in output q
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Step-by-Step Analysis
Question restatement: The prompt asks about Averaged fixed costs for a firm and presents four options to evaluate.
Option 1: 'are constant with increasing output q' Fixed costs are incurred regardless of output, so the total fixed cost stays the same, but the average fixed cost (AFC = FC / q) declines as q rises. Therefore, AFC is not constant; it......Login to view full explanationLog in for full answers
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