In the short run, the firm's average fixed costs
A) always increase as output increases.
B) always decline as output increases.
C) equal zero.
D) remain constant as output expands.

Name: In the short run, the firm's average fixed costs A) always increase as output increases. B) always decline as output increases. C) equal zero. D) remain constant as output expands.
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Question

Quizplus · Accepted Answer

In the short run, average fixed costs decline as output increases because fixed costs are spread over a larger number of units.

In the Short Run, the Firm's Average Fixed Costs