In the short run, fixed costs are important in determining a competitive firm's optimal level of output.

Name: In the short run, fixed costs are important in determining a competitive firm's optimal level of output.
Brand: Quizplus
Rating: 4.7 (42 reviews)

Question

Quizplus · Accepted Answer

In the short run, a competitive firm's optimal level of output is primarily determined by its variable costs and the market price of its product, as fixed costs do not change with the level of output and thus do not affect the marginal decision-making process.

In the Short Run, Fixed Costs Are Important in Determining