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Marginal Fixed Cost

Question 11

Multiple Choice

Marginal fixed cost:


A) is a positive constant irrespective of output level.
B) declines as output is increased because a fixed numerator is divided by an ever-growing denominator.
C) generally increases as output is increased.
D) is equal to average variable cost and average total cost at their minimum points.
E) is always equal to zero and is therefore ignored by economists.

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