Total fixed cost
A) increases as output increases.
B) does not change as output changes.
C) decreases as output increases.
D) initially decreases and then increases as output increases.
Question 2
Greg and Todd form a partnership and start a business in which each has a 50 percent share of the profit. After a year, the firm goes bankrupt and has debts of 20,000. Greg has no money, but Todd has 25,000 in the bank.
Todd must pay ________ of debt. A) 0 because in a partnership each partner must pay the same
B) 0 because partners in a partnership have limited liability
C) half, or 10,000
D) 20,000
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