A firm with only fixed costs will have which of the following average cost relationships? As production increases, average total cost will: a remain the same decrease increase decrease and then increase increase and then decrease

A firm with only fixed costs will have which of the following average cost relationships? As production increases, average total cost will: a remain the same decrease increase decrease and then increase increase and then decrease

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter10: The Firm And The Industry Under Perfect Competition

Section: Chapter Questions

Problem 4TY

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Question

A firm with only fixed costs will have which of the following average cost relationships? As production
increases, average total cost will:
a
remain the same
b.
decrease
increase
decrease and then increase
increase and then decrease

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