1 answer

If a firm decreases its quantity of output, then which of the following will definitely be...

Question:

If a firm decreases its quantity of output, then which of the following will definitely be true?

A.Its variable costs will stay the same.

B.Its fixed costs will stay the same.

C.Its total costs will increase.

If a firm produces no output, then its

A.

total variable costs equal zero.

B.

total fixed costs equal zero.

C.

total costs equal zero.

D.

marginal costs equal zero.

If a firm reduces its level of production, then its

A.

total variable costs decrease.

B.

total fixed costs decrease.

C.

total costs remain constant.

D.

average fixed costs decrease.


Answers

1) If a firm decreases its quantity of output, then which of the following will definitely be true?

B.Its fixed costs will stay the same.

2) If a firm produces no output, then its

A.

total variable costs equal to zero.

3) If a firm reduces its level of production, then its

A.

total variable costs decrease.

.

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