In which of the following ways do advertising and other selling costs affect a firm's cost curves?
i.Advertising expenditures increase total fixed costs.
ii.Selling costs increase total fixed costs.
iii.Advertising and other selling costs per unit of output decrease as output increases.
A) i only
B) i and ii
C) iii only
D) i and iii
E) i, ii, and iii

Question

Quizplus · Accepted Answer

Advertising expenditures and selling costs are typically considered fixed costs because they do not vary directly with the level of output. As output increases, these fixed costs are spread over more units, decreasing the per-unit cost of advertising and selling.

In Which of the Following Ways Do Advertising and Other