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Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
At [...], AFC may be so low that it is a small proportion of average total cost.
Answer
high production volumes
Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
At [...], AFC may be so low that it is a small proportion of average total cost.
Answer
?
Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
At [...], AFC may be so low that it is a small proportion of average total cost.
Answer
high production volumes
If you want to change selection, open original toplevel document below and click on "Move attachment"
At high production volumes, AFC may be so low that it is a small proportion of average total cost.
>Dividing total fixed cost by quantity yields average fixed cost (AFC), which decreases throughout the production span. A declining average fixed cost reflects spreading a constant cost over more and more production units. At high production volumes, AFC may be so low that it is a small proportion of average total cost. In Exhibit 13, AFC declines from 100 at 1 unit, to 20 at 5 units, and then to 10 at an output level of 10 units. <html>
Parent (intermediate) annotation
Open itAt high production volumes, AFC may be so low that it is a small proportion of average total cost.
Original toplevel document
Open it>Dividing total fixed cost by quantity yields average fixed cost (AFC), which decreases throughout the production span. A declining average fixed cost reflects spreading a constant cost over more and more production units. At high production volumes, AFC may be so low that it is a small proportion of average total cost. In Exhibit 13, AFC declines from 100 at 1 unit, to 20 at 5 units, and then to 10 at an output level of 10 units. <html>
Summary
| status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
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| repetition number in this series | 0 | memorised on | scheduled repetition | ||||
| scheduled repetition interval | last repetition or drill |
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