WebAs in the short run, costs in the long run depend on the firm’s level of output, the costs of factors, and the quantities of factors needed for each level of output. The chief … WebExpert Answer. 100% (4 ratings) 1. - The correct option is A. - Average fixed cost per unit fall as the level of activity rises. - Average fixed cost (AFC) = Fixed cost / activity level - It was known fact that fixed cost remains same at every level of activity up to the firm's cap …. View the full answer.

How Do Fixed and Variable Costs Affect the Marginal …

WebAverage fixed costs per unit fall as the level of activity rises. Average fixed costs per unit cannot be determined. 15. LO 2.3 The high-low method and least-squares regression are used by managers to ________. decide whether to make or buy a component part minimize corporate tax liability maximize output estimate costs 16. WebVariable costs typically show diminishing marginal returns, so that the marginal cost of producing higher levels of output rises. Variable costs can change over time and should continue to play a role in economic decisions about future production or pricing. fish pie recipe easy tesco

Econ Chapter 9 Flashcards Quizlet

Webthe total cost of producing any given level of output is greater than or equal to the short-run total cost of producing that level of output. c. all of the firm's input quantities are … WebThe diagram below illustrates the idea of economies of scale; it shows the average cost of producing an alarm clock falling as the quantity of output rises. For a small-sized … Webthe change in total cost from producing one more unit of input in the long run, all costs are variable economies of scale is defined as a long run experience where the average cost falls as output increases constant returns to risk occur when long run average cost is unchanged as output increases Students also viewed EXAM 3 Managerial Econ 39 terms candidates for culver city school board