Average fixed costs in the short-run:
A) decrease as the quantity produced increases.
B) first decrease, then increase eventually as the quantity produced increases.
C) increase as the quantity produced increases.
D) first increase, then decrease eventually as the quantity produced increases.
Average fixed costs in the short-run:
A) decrease as the quantity produced increases.
B) first decrease, then increase eventually as the quantity produced increases.
C) increase as the quantity produced increases.
D) first increase, then decrease eventually as the quantity produced increases.
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As long as profits remain positive, a firm will want to increase the quantity produced.
Question 3 options:
| Ā | 1) True |
| Ā | 2) False |
Question 4 (1 point)
Only variable costs are relevant to a firm's decision to shut down.
Question 4 options:
| Ā | 1) True | ||||||||||||||||||||||||||||||||||||
| Ā |
2) False A competitive firm faces a downward-sloping demand for its product. Question 1 options:
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