Explain one reason why average fixed costs change as excess capacity increases.
Question
Explain one reason why average fixed costs change as excess capacity increases.
🧐 Not the exact question you are looking for?Go ask a question
Solution 1
Average fixed costs change as excess capacity increases due to the following reason:
- Understanding Fixed Costs: Fixed costs are those costs that do not change with the level of output. These include costs such as rent, salaries, and equipment costs. These costs are incurred regardless of whether Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv
Similar Questions
Explain one reason why average fixed costs change as excess capacity increases.
____ are also known as direct costs A. average variable costs B. average fixed costs C. variable costs D. total fixed costsReset Selection
____ are also known as direct costs A. average variable costs B. average fixed costs C. variable costs D. total fixed costs
A firm has fixed costs of $400, average total costs of $3 and average variable costs of $2.50. The output of the firm is _____________.
Analyse one reason why the costs of training employees should be weighed against the costs of not training them.
1/3