Figure 7-5
-Which of the curves in Figure 7-5 could be a firm's average fixed cost curve?
A)(a)
B)(b)
C)(c)
D)(d)

Question

Figure 7-5 
-Which of the curves in Figure 7-5 could be a firm's average fixed cost curve?
A)(a) 
B)(b) 
C)(c) 
D)(d)

Quizplus · Accepted Answer

The average fixed cost (AFC) curve always slopes downward as output increases because fixed costs are spread over a larger number of units, leading to a decrease in the average fixed cost per unit. Curve (a) is the only one that consistently slopes downward, fitting the description of an AFC curve.

Figure 7-5 -Which of the Curves in Figure 7-5 Could Be a Could