1. Fixed costs are those costs which are: a.) zero if the firm produces no outpu

1) c.) independent of the rate of output 2) b.) can vary as the result of using a fixed amount of plant and equipment more or less intensively

ID: 1181472 • Letter: 1

Question

1. Fixed costs are those costs which are:

a.) zero if the firm produces no output in the short run

b.) unchanging through time

c.) independent of the rate of output

d.) implicit to a competitive firm

2. In the short run, output:

a.) is absolutely fixed

b.) can vary as the result of using a fixed amount of plant and equipment more or less intensively

c.) may be altered by varying the size of plant and equipment which now exist in the industry

d.) can vary as the result of changing the size of existing plants and by new firms entering or leaving the industry

c.) independent of the rate of output

b.) can vary as the result of using a fixed amount of plant and equipment more or less intensively

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