Which of the following is true of fixed costs? a. Fixed costs can be changed, but it is extremely costly to do so in a short period of time. Therefore, in the short run not all input factors are flexible b. Fixed costs can be changed immediately. Therefore, we do not observe inefficiencies in the economy. c. Fixed costs can never be changed. Therefore, companies do not change their output over time. d. Fixed costs are not an issue economists deal with. The term relates to psychology.
Which of the following is true of fixed costs? a. Fixed costs can be changed, but it is extremely costly to do so in a short period of time. Therefore, in the short run not all input factors are flexible b. Fixed costs can be changed immediately. Therefore, we do not observe inefficiencies in the economy. c. Fixed costs can never be changed. Therefore, companies do not change their output over time. d. Fixed costs are not an issue economists deal with. The term relates to psychology.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter21: Costs And The Supply Of Goods
Section: Chapter Questions
Problem 16CQ
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Which of the following is true of fixed costs?
a. Fixed costs can be changed, but it is extremely costly to do so in a short period of time. Therefore, in the short run not all input factors are flexible
b. Fixed costs can be changed immediately. Therefore, we do not observe inefficiencies in the economy.
c. Fixed costs can never be changed. Therefore, companies do not change their output over time.
d. Fixed costs are not an issue economists deal with. The term relates to psychology.
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