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Fill in the blanks to complete the passage about why firms do not always increase their
production.
Drag word(s) below to fill in the blank(s) in the passage.
Firms use cost data to make decisions about how many units to produce based on their costs.
Increasing production may not always lead to an increase in profit. Increasing production will cause a
firm's costs to increase, which could outweigh any benefits that were previously gained by
lowering their overhead-which is determined by their costs in the short run.
fixed and variable
variable
fixed
average fixed

Respuesta :

anthougo

The reason firms do not always increase their production is based on the following factors:

 

1. Fixed and Variable costs: The fixed and variable costs are used to decide the number of goods to produce.

 

2. Average Fixed costs: When a firm increases its production, the average fixed costs may increase.

 

3. Fixed costs: The overhead cost is the fixed costs in the short-run.

 

Thus, each of the three blanks is filled with correct answer.  Note that the every business entity incurs both fixed and variable costs.

Learn more: https://brainly.com/question/14872023

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