FixedCosts$5,0000Quantity of outputRefer to the figure above, what happens to the average fixed cost of productionwhen the firm decreases output from 200 to 150?150200TotalFixedCostIt falls.It could rise or fall depending on what happens to total revenue.It remains constant.It rises.

Cost can be defined as a concept that shows the amount of expenditure and any other sacrifice such…

Refer to the figure above, what happens to the average fixed cost of production when the firm decreases output from 200 to 150? It falls. It could rise or fall depending on what happens to total revenue. It remains constant. It rises.

Refer to the figure above, what happens to the average fixed cost of production when the firm decreases output from 200 to 150? It falls. It could rise or fall depending on what happens to total revenue. It remains constant. It rises.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 9SQP

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

Fixed
Costs
$5,000
0
Quantity of output
Refer to the figure above, what happens to the average fixed cost of production
when the firm decreases output from 200 to 150?
150
200
Total
Fixed
Cost
It falls.
It could rise or fall depending on what happens to total revenue.
It remains constant.
It rises.

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