As output decreases, average fixed costs
A) decrease.
B) initially decrease and then increase.
C) remain constant.
D) increase.

Name: As output decreases, average fixed costs A) decrease. B) initially decrease and then increase. C) remain constant. D) increase.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Average fixed costs increase as output decreases because the total fixed costs are spread over a smaller number of units, making the cost per unit higher.

As Output Decreases, Average Fixed Costs