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Cost Curves · Question 13 of 62

Question 13

MediumOriginal question

If TFC rises (say the rent goes up) and nothing else changes, which curves move?

Options for question 13

Show the answer and explanation
CorrectNot quiteAnswer D

Correct answer: D

Explanation

  1. A higher fixed cost raises every total or average that includes it: TFC, TC, AFC and AC.

  2. TVC, AVC and MC contain no fixed cost, so they stay where they are.

Concept
Effect of a rise in fixed cost
Typical time
70 s
Your time
—
The rule this testsFixed and variable cost
Practise this chapter →

Ten questions from Cost Curves, at your own pace.

Practise this chapter →

Ten questions from Cost Curves, at your own pace.