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Basic Question 11 of 29
A firm's average fixed costs ______
B. are always larger than variable costs in the short and long run.
C. are the same no matter what quantity the firm produces.
D. are equal to zero only when the level of production is also zero.
E. always increase as output increases.
A. are determined by dividing the total fixed cost by the amount produced.
B. are always larger than variable costs in the short and long run.
C. are the same no matter what quantity the firm produces.
D. are equal to zero only when the level of production is also zero.
E. always increase as output increases.
User Contributed Comments 3
| User | Comment |
|---|---|
| danlan | Total fixed costs are the same, but average tixed costs are divided by the amount produced |
| Smurfy | so the more you produce, the more the average fixed cost falls (since total fixed costs are constant) |
| boddunah | aver.fixed cost is total fixed cost divided by the amount produced.so average fixed cost depends on amount produced ,not total fixed costs. |
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Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2024 Level I Curriculum, Volume 1, Module 1.