Which statement is true? Fixed costs a.do NOT exist in the long run. b.depend on the firm's level of output. c.are zero if the firm is producing nothing. d.are the difference between total costs and average variable costs.

Which statement is true? Fixed costs a.do NOT exist in the long run. b.depend on the firm's level of output. c.are zero if the firm is producing nothing. d.are the difference between total costs and average variable costs.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 6SQP

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Which statement is true? Fixed costs

a.do NOT exist in the long run.

b.depend on the firm's level of output.

c.are zero if the firm is producing nothing.

d.are the difference between total costs and average variable costs.

Definition Definition Measure of the cost of production per unit of output, including only variable costs such as wages, materials, and utilities. AVC is calculated by dividing total variable cost by the number of units produced. Understanding average variable cost is important for businesses to make decisions on pricing, production levels, and profitability.

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