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A Number of the Costs of a Manufacturing Firm Are

Question 41

Multiple Choice

A number of the costs of a manufacturing firm are fixed in the short run,like its building and machinery costs.Given these fixed costs,


A) if the manufacturer were to increase production,average fixed costs would increase.
B) these costs should be considered in a decision to increase short-run production levels.
C) if the manufacturer were to expand production,average fixed costs would decrease.
D) if the manufacturer decreased production,total costs would increase.

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