Question 1
In economics, the term "fixed costs" means
◦ opportunity costs.
◦ costs that are never accounted for.
◦ implicit costs.
◦ costs incurred in the past that involve no implicit costs.
◦ costs that do not vary with the level of output produced.
Question 2
In the short run time horizon for a firm, total fixed costs
◦ increase and then decrease as output increases.
◦ decrease as output increases.
◦ decrease and then increase as output increases.
◦ are equal to total variable costs.
◦ do not vary with output.