--%>
Assignment Help - homework help

Explain the term average fixed cost

Explain the term average fixed cost.

E

Expert

Verified

Average fixed cost (it is fixed cost per unit) changes along with a change in the quantity of production. When the volume of production rises, average fixed cost will reduces. When the quantities of production reduce, average fixed cost will raise. Therefore, there is an inverse relationship in between quantity of production and fixed costs.

   Related Questions in Managerial Economics

  • Q : Explain the term Production function

    Explain the term Production function.

    		•
  • Q : What is Constant Returns to scale What

    What is Constant Returns to scale?

    		•
  • Q : Wage rate and price of leisure

    Increases within the wage rate all the time: (w) lack impact on the relative price of leisure. (x) increase the relative price of leisure. (y) decrease the relative price of leisure. (z) increase the quantity of individual labor supplies.

  • Q : Illustrations of investments in human

    Illustrations of investments in human capital would comprise: (1) freeing slaves at the conclusion of the Civil War. (2) betting on the outcome of a professional wrestling match. (3) need people to pass a test on the U.S. Constitution before permittin

    		•
  • Q : Wage Flexibility An assumption

    An assumption regarding purely competitive labor markets to make sure market clearing is which: (w) firms maximize profit. (x) individuals and households maximize utility. (y) wages and prices are flexible. (z) trade unions engage in collective bargai

    		•
  • Q : Regression-Correlation statistical

    Illustrates the Regression and Correlation statistical method of Demand Forecasting?

    		•
  • Q : Accurate ranking in most elastic labor

    When we try to list labor supplies from least elastic to most elastic, in that case the most accurate ranking would most likely be: (1) competitive firm, minute industry, highly skilled occupation. (2) economy, skilled occupation, competitive firm wit

    		•
  • Q : Illustrates the Barometric technique of

    Illustrates the Barometric technique of Demand Forecasting?

    		•
  • Q : Define naive method and its techniques

    Define naive method and its techniques briefly.

    		•
  • Q : Increases in orders for new capital A

    A change in a derived demand is best demonstrated while there are increases in: (1) sales of roasted peanuts during baseball season. (2) new car sales during economic downturns. (3) orders for new capital throughout economic booms. (4) beef prices when cowboys unioniz

    		•