QuestionJuly 21, 2025

Total fixed cost increases as output increases. declines as output increases. is always zero. remains constant even if the firm shuts down.

Total fixed cost increases as output increases. declines as output increases. is always zero. remains constant even if the firm shuts down.
Total fixed cost
increases as output increases.
declines as output increases.
is always zero.
remains constant even if the firm shuts down.

Solution
4.3(312 votes)

Answer

remains constant even if the firm shuts down. Explanation 1. Define Total Fixed Cost Total fixed cost (TFC) refers to costs that do not change with the level of output produced. 2. Analyze Behavior of TFC TFC remains constant regardless of the level of output, including when production is zero.

Explanation

1. Define Total Fixed Cost<br /> Total fixed cost (TFC) refers to costs that do not change with the level of output produced.<br /><br />2. Analyze Behavior of TFC<br /> TFC remains constant regardless of the level of output, including when production is zero.
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