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Agriculture Economics QUESTION #11866
Question 1
Total Fixed Costs ($TFC$) are best described as costs that:
  • Vary directly with output
  • Do not change with the level of output in the short run✔️
  • Only occur in the long run
  • Equal zero when output is zero
Correct Answer Explanation
$TFC$ remain constant regardless of the quantity produced in the short run, since fixed inputs cannot be changed.