The difference between variable cost and fixed cost is that Select one: a. fixed cost is paid even when there is no outout b. fixed cost is always falling as output increases C. variable cost only increases for a while and then it decreases d. fixed cost is always less than variable cost e. fixed cost is not paid once production beoins

The difference between variable cost and fixed cost is that Select one: a. fixed cost is paid even when there is no outout b. fixed cost is always falling as output increases C. variable cost only increases for a while and then it decreases d. fixed cost is always less than variable cost e. fixed cost is not paid once production beoins

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 31CTQ: A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output...

See similar textbooks

Similar questions

What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
How does fixed cost affect marginal cost? Why is this relationship important?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
Are fixed costs also sunk costs? Explain.
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?