The average fixed cost curve always has a negative slope because:
A)marginal costs are below average fixed costs.
B)average variable costs exceed marginal costs.
C)total fixed costs always decrease.
D)total fixed costs do not change as output increases.

Question

Quizplus · Accepted Answer

The average fixed cost curve has a negative slope because total fixed costs remain constant regardless of output, so as output increases, the average fixed cost per unit decreases.

The Average Fixed Cost Curve Always Has a Negative Slope