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true or false:(plz explain it thx!) 1. Quasi- fixed costs are those costs thatcan be avoided...

true or false:(plz explain it thx!)

1.

Quasi- fixed costs are those costs thatcan be avoided if and only if a firm produces zero output.

2.

If the technology exhibits constant returns to scale,  the total cost will be constant no matter what level of output the firm wants to produce.

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Answer #1

1.

This is true.

Quasi-fixed costs:

These are the costs not depending upon number of hours worked or units produced by workers but depending on each unit of labor recruitment.

Some of the examples are cost of recruitment, training and development cost, social security, insurance premium, pension facilities. Considering these examples if a firm has 0 output of production, there would be no further recruitment, no training, and other benefits; these makes no quasi-fixed cost; therefore avoided.

2.

This is false.

Here the total cost would increase but average total cost would constant.

Constant return indicates a proportionate change in output (increase or decrease) with its related input (such as labor or capital or both).

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