Answer:
(A) when output increases, the firm spreads its total fixed cost over a larger output
Explanation:
The average fixed cost will decrease as the output increase because the company allocate ths cost over a larger amount making the weight on each unit decrease:
Using math we can determinate that the fixed cost tend to zer oas higher increase the amount of quantity produced.
Answer:
$60
Explanation:
According to information on your question. We are to note that an absence or reduction of suppliers could lead to lower supply.
As in this case, the producer supply loss of $60 was incurred as some sellers dropped out of the market as a result of the tax.
