Which of the following costs always declines as output increases?
A) Average cost
B) Marginal cost
C) Fixed cost
D) Average fixed cost
E) Average variable cost

Name: Which of the following costs always declines as output increases? A) Average cost B) Marginal cost C) Fixed cost D) Average fixed cost E) Average variable cost
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Question

Quizplus · Accepted Answer

Average fixed cost declines as output increases because the total fixed cost is spread over a larger number of units.

Which of the Following Costs Always Declines as Output Increases