Home » Demand and Supply MCQs » In the short run, when the output of a firm increases, its average fixed cost Demand and Supply MCQs In the short run, when the output of a firm increases, its average fixed cost September 27, 2022 36 Views Q. In the short run, when the output of a firm increases, its average fixed cost:Remains constantDecreasesIncreasesFirst decreases and then risesAnswer: Decreases
The term ‘normal profit’ as used in the analysis of equilibrium of the firm under perfect competition, refers to