--%>
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 : Case Study I am uploading another

    I am uploading another project. Please provide cost and estimated delivery day. Thanks.

    		•
  • Q : Define the inelastic demand Define the

    Define the inelastic demand.

    		•
  • Q : Determine what would contain in

    Please help me to solve the problem of economic that is given below: Economic capital would comprise: (w) corporate bonds. (x) money. (y) machinery. (z) sports cars. Can someone

    		•
  • Q : Economic incidence of a tax imposing

    The economic incidence of a tax: (i) identical to its legal incidence. (ii) either forward-shifted to suppliers or backward-shifted to consumers. (iii) imposed on whoever suffers decreased purchasing power because of the tax. (iv) more easily found th

    		•
  • Q : Value of the Marginal Product and

    The value to society of the additional output produced by an additional worker is the: (w) marginal resource cost of labor. (x) value of the marginal product of labor. (y) value of the average product of labor. (z) marginal physical product of labor.<

    		•
  • Q : Production of food-and-clothing economy

    In an entirely employed food-and-clothing economy, continual equivalent reductions in food output generally will make it: (1) Essential to decrease clothing output uniformly. (2) Probable to generate successively bigger increases in clothing output. (

    		•
  • Q : Explain the concept of revenue Explain

    Explain the concept of revenue.

    		•
  • Q : Analysis of Costs and Revenue with

    Refer to below figure. Assume that the firm is currently producing Q2units. What occurs if this expands output to Q3units: w) Its profit raises by the size of the vertical distance df. x) this makes less profit. y) this incurs a loss. z) this wil

    		•
  • Q : Define the pricing of a new product

    Define the pricing of a new product.

    		•
  • Q : Allocative and technical efficiency in

    Economy-extensive efficiency needs both allocative and technical efficiency within production and: (w) equity within the distribution of national income. (x) biological efficiency, in that people's basic desires should be met. (y) pol

    		•