--%>
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 : Aggregate Supply of Labor Labor

    Labor supplies for the economy as an entire are LEAST determined through: (w) labor unions. (x) wage rates and structures of wages. (y) education and training of the work force. (z) labor force participation rates. Hey friends plea

    		•
  • Q : Conventional theories of the labor

    As per most conventional theories of the labor market, the: (w) supply curve of labor is positively sloped since higher wages attract additional workers in the labor market. (x) firms should contend with increasing returns from additional employment.

    		•
  • 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 : Exceptional demand curve what is

    what is exceptional demand curve and its explanation?

    		•
  • Q : Equal pay for equal work rule Rigid

    Rigid enforcement of “equal-pay-for-equal-work” law would: (w) raise the wage of minority workers who had been discriminated against. (x) lower the wages of “favored” non minority workers who had received higher wages before. (

    		•
  • Q : Strategy probable to make a cartel A

    A strategy probable to make a cartel successful would be for cartel members to: (w) give heterogeneous goods. (x) stagger the amount by that they raise prices. (y) have set enforceable production quotas. (z) keep high prices when several fringe compet

    		•
  • 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 : Trent projection statistical method of

    Explain the Trent projection statistical method of Demand Forecasting.

    		•
  • Q : Legal incidence of tax burdens The firm

    The firm or individual responsible for paying a specified tax to the government bears: (w) stigma of being a tax evader when it is completely forward shifted. (x) full tax burden only when the tax is backward shifted. (y) legal incidence of the tax. (z) reduction in p

    		•
  • Q : Define the difference between

    Define the difference between accounting and economic cost.

    		•